Energy and Resource Allocation: A Dynamic Model of the "Dutch Disease"
It is well known that a domestic resource discovery gives rise to wealth effects that cause a squeeze of the tradeable good sector of an open economy. The decline of the manufacturing sector following an energy discovery has been termed the "Dutch disease," and has been investigated in many recent studies. Our model extends the principally static analyses to date by allowing for: (1 ) short-run capital specificity and long-run capital mobility; (2) inter- national capital flows; and (3) far-sighted intertemporal optimizing behavior by households and firms. The model is solved by numerical simulation.
|Date of creation:||Feb 1982|
|Publication status:||published as Bruno, Michael and Jeffrey Sachs. "Energy and Resources Allocation: A Dynamic Model of the "Dutch Disease."" Review of Economic Studies, Vol. 51, No. 159, (1982), pp. 845-859.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
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"Real Adjustment and Exchange Rate Dynamics,"
NBER Chapters,in: Exchange Rates and International Macroeconomics, pages 285-316
National Bureau of Economic Research, Inc.
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- Willem H. Buiter & Douglas D. Purvis, 1980. "Oil, Disinflation, and Export Competitiveness: A Model of the "Dutch Disease"," NBER Working Papers 0592, National Bureau of Economic Research, Inc.
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- Bruno, Michael, 1982. " Adjustment and Structural Change under Supply Shocks," Scandinavian Journal of Economics, Wiley Blackwell, vol. 84(2), pages 199-221. Full references (including those not matched with items on IDEAS)
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