Structural Differences and Macroeconomic Adjustment to Oil Price Increases in a Three-Country Model
AbstractIn this paper a three-country model based on intertemporal maximizing behavior is constructed in order to analyze the effects of oil price increases on welfare levels and trade balance positions. The model can also be used to assess the effects of oil price increases on the world interest rate, on the final goods terms of trade between oil importers (what is sometimes called the real exchange rate), and on output, investment and savings levels, oil imports, wages, and consumption at each date. The analysis highlights the role of structural asymmetries between oil importers in accounting for differences in trade balance responses. A number of structural differences are isolated in turn in order to determine their influence on the final goods terms of trade, which is the key factor in affecting relative trade balance positions.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0839.
Date of creation: Jan 1982
Date of revision:
Publication status: published as Marion, Nancy Peregrim and Lars E. O. Svensson."The Terms of Trade Between Oil Importers," Journal of International Economics, Vol. 20, pp. 99-113, Feb. 1986. IIES Seminar Paper No. 248.
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NBER Working Papers
0540, National Bureau of Economic Research, Inc.
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- Nancy Peregrim Marion, 1981. "Anticipated and Unanticipated Oil Price Increases and the Current Account," NBER Working Papers 0759, National Bureau of Economic Research, Inc.
- Stanley Fischer, 1983. "Supply Shocks, Wage Stickiness, and Accommodation," NBER Working Papers 1119, National Bureau of Economic Research, Inc.
- Nancy Peregrim Marion & Lars E.O. Svensson, 1982.
"Adjustment to Expected and Unexpected Oil Price Changes,"
NBER Working Papers
0997, National Bureau of Economic Research, Inc.
- Nancy Peregrim Marion & Lars E. O. Svensson, 1984. "Adjustment to Expected and Unexpected Oil Price Changes," Canadian Journal of Economics, Canadian Economics Association, vol. 17(1), pages 15-31, February.
- Michael Bruno, 1983. "Petrodollars and the Differential Growth Performance of Industrial and Middle-Income Countries in the 1970s," NBER Working Papers 1056, National Bureau of Economic Research, Inc.
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