IDEAS home Printed from https://ideas.repec.org/p/bis/biswps/17.html
   My bibliography  Save this paper

Energy shocks and the demand for energy

Author

Listed:
  • Palle S. Andersen
  • Henri Bernard

Abstract

This paper discusses developments in energy consumption and oil markets since the early 1970s, highlighting the fall in energy and oil consumption per unit of output and the accompanying reduction in industrialised countries' exposure and vulnerability to energy shocks. In an attempt to analyse the determinants of aggregate output, a very simple model is subsequently presented to discuss the major transmission channels of energy price shocks and the related risk of disturbances to long-term equilibrium growth. The focus is then turned on investment and the capital stock and their role in the determination of energy demand. Energy demand equations are empirically derived for seven major countries, distinguishing in each case between demand for energy in industry, transportation and the commercial and residential sectors.

Suggested Citation

  • Palle S. Andersen & Henri Bernard, 1991. "Energy shocks and the demand for energy," BIS Working Papers 17, Bank for International Settlements.
    • Handle: RePEc:bis:biswps:17
    as

    Download full text from publisher

    File URL: http://www.bis.org/publ/work17.pdf
    File Function: Full PDF document
    Download Restriction: no
    File URL: http://www.bis.org/publ/work17.htm
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Malinvaud, Edmond, 1982. "Wages and Unemployment," Economic Journal, Royal Economic Society, vol. 92(365), pages 1-12, March.
    2. Blanchard, Olivier Jean, 1990. "Why does money affect output? A survey," Handbook of Monetary Economics, in: B. M. Friedman & F. H. Hahn (ed.), Handbook of Monetary Economics, edition 1, volume 2, chapter 15, pages 779-835, Elsevier.
    3. Rod Cross, 2000. "Hysteresis and Emu," Metroeconomica, Wiley Blackwell, vol. 51(4), pages 367-379, November.
    4. Lawrence F. Katz, 1986. "Efficiency Wage Theories: A Partial Evaluation," NBER Chapters, in: NBER Macroeconomics Annual 1986, Volume 1, pages 235-290, National Bureau of Economic Research, Inc.
    5. Peter Jarrett & Raymond Torres, 1987. "A Revised Supply Block for the Major Seven Countries in INTERLINK," OECD Economics Department Working Papers 41, OECD Publishing.
    6. Dolado, Juan J & Jenkinson, Tim & Sosvilla-Rivero, Simon, 1990. "Cointegration and Unit Roots," Journal of Economic Surveys, Wiley Blackwell, vol. 4(3), pages 249-273.
    7. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
    8. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    9. Bean, C. & Gavosto, A., 1989. "Outsiders, Capacity Shortages And Unemployment In The United Kingdom," Papers 332, London School of Economics - Centre for Labour Economics.
    10. S. Fischer, 1975. "Long-Term Contracts, Rational Expectations and the Optimal Money Supply Rule," Working papers 166, Massachusetts Institute of Technology (MIT), Department of Economics.
    11. Fischer, Stanley, 1977. "Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 191-205, February.
    12. R. Glenn Hubbard, 1986. "Supply Shocks and Price Adjustment in the World Oil Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(1), pages 85-102.
    13. repec:bla:econom:v:53:y:1986:i:210(s):p:s1-22 is not listed on IDEAS
    14. Coe, David T, 1990. "Insider-Outsider Influences on Industry Wages: Evidence from Fourteen Industrialized Countries," Empirical Economics, Springer, vol. 15(2), pages 163-183.
    15. Engle, Robert F. & Yoo, Byung Sam, 1987. "Forecasting and testing in co-integrated systems," Journal of Econometrics, Elsevier, vol. 35(1), pages 143-159, May.
    16. Michael Bruno & Jeffrey D. Sachs, 1985. "Economics of Worldwide Stagflation," NBER Books, National Bureau of Economic Research, Inc, number brun85-1, March.
    17. William C. Hunter & Mary S. Rosenbaum, 1991. "Supply shocks and household demand for motor fuel," Economic Review, Federal Reserve Bank of Atlanta, issue Mar, pages 1-11.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Franz, Wolfgang, 1993. "Unvollkommene Arbeitsmärkte in makroökonomischen Modellen: Eine Übersicht," Discussion Papers 1, University of Konstanz, Center for International Labor Economics (CILE).
    2. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777, March.
    3. Michael Bruno, 1988. "Theoretical Developments in the Light of Macroeconomic Policy and Empirical Research," NBER Working Papers 2757, National Bureau of Economic Research, Inc.
    4. J.P.G. Reijnders, 2007. "Impulse or propagation? How the tides turned in Business Cycle Theory," Working Papers 07-07, Utrecht School of Economics.
    5. Rosen, Sherwin, 1985. "Implicit Contracts: A Survey," Journal of Economic Literature, American Economic Association, vol. 23(3), pages 1144-1175, September.
    6. Paresh Kumar Narayan, 2011. "Are shocks to tourism transitory at business cycle horizons?," Applied Economics, Taylor & Francis Journals, vol. 43(16), pages 2071-2077.
    7. Bergman, Michael, 1996. "International evidence on the sources of macroeconomic fluctuations," European Economic Review, Elsevier, vol. 40(6), pages 1237-1258, June.
    8. Mark Bils, 1991. "Testing for Contracting Effects on Employment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1129-1156.
    9. Slanicay Martin, 2014. "Some Notes on Historical, Theoretical, and Empirical Background of DSGE Models," Review of Economic Perspectives, Sciendo, vol. 14(2), pages 145-164, June.
    10. Holzer, Harry J & Montgomery, Edward B, 1993. "Asymmetries and Rigidities in Wage Adjustments by Firms," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 397-408, August.
    11. Mankiw, N Gregory, 1988. "Recent Developments in Macroeconomics: A Very Quick Refresher Course," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 20(3), pages 436-449, August.
    12. Alesina, Alberto & Perotti, Roberto, 1995. "Taxation and redistribution in an open economy," European Economic Review, Elsevier, vol. 39(5), pages 961-979, May.
    13. Gangopadhyay, Partha & Gangopadhyay, Renu, 2008. "Flexible reservation prices and price inflexibility," Economic Modelling, Elsevier, vol. 25(3), pages 499-511, May.
    14. Grimes, Arthur, 1991. "The effects of inflation on growth: some international evidence," MPRA Paper 68526, University Library of Munich, Germany.
    15. Esposti, Roberto, 2002. "Public agricultural R&D design and technological spill-ins: A dynamic model," Research Policy, Elsevier, vol. 31(5), pages 693-717, July.
    16. repec:zbw:bofrdp:1992_016 is not listed on IDEAS
    17. Robert Buckle & Kunhong Kim & Julie Tam, 2002. "A structural var approach to estimating budget balance targets," New Zealand Economic Papers, Taylor & Francis Journals, vol. 36(2), pages 149-175.
    18. Francisco J. Goerlich-Gisbert, 1999. "Shocks agregados versus shocks sectoriales. Un análisis factorial dinámico," Investigaciones Economicas, Fundación SEPI, vol. 23(1), pages 27-53, January.
    19. George A. Akerlof, 2003. "Behavioral Macroeconomics and Macroeconomic Behavior," The American Economist, Sage Publications, vol. 47(1), pages 25-47, March.
    20. Carl E. Walsh, 1987. "The Impact of Monetary Targeting in the United States: 1976-1984," NBER Working Papers 2384, National Bureau of Economic Research, Inc.
    21. Alogoskoufis, George & Malliaris, A.G. & Stengos, Thanasis, 2023. "The scope and methodology of economic and financial asymmetries," The Journal of Economic Asymmetries, Elsevier, vol. 27(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bis:biswps:17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Martin Fessler (email available below). General contact details of provider: https://edirc.repec.org/data/bisssch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.