IDEAS home Printed from
   My bibliography  Save this paper

A Revised Supply Block for the Major Seven Countries in INTERLINK


  • Peter Jarrett


  • Raymond Torres



While the philosophy behind the supply block has not changed since its initial version, each of the block's behavioural equations as well as the parameters of the production functions have been substantially modified. These modifications have been motivated, in general, by a wish to improve the consistency of the block and to relax some of the constraints imposed. Consistency has been improved via a minor modification to the procedure for estimating the parameters of the production function, as well as from the inclusion of a measure of "normal" inventory growth in the demand term in the output equation. In the new version, the equilibrium stock/output ratio is no longer treated as a constant; tax considerations and domestic price effects are now included in the business energy price equations, and the dynamic adjustment of the factor demand equations has been made more general. Finally, some research on potential output, based on the revised production model, is reported ... Quoique les principes généraux à la base du bloc d'offre n'aient pas été modifies depuis leur version initiale, les équations de comportements, ainsi que les paramètres des fonctions de production ont subi de profonds changements. Ces modifications ont été motivées notamment par un souci d'amélioration de la cohérence de l'ensemble du bloc et d'allégement des contraintes pesant sur les équations. La cohérence a bénéficié de l'adaptation d'une procédure d'estimation des paramètres des fonctions de production légèrement modifiée, ainsi que de l'incorporation d'une mesure de la variation "normale" des stocks aux équations d'offre. Des contraintes ont été supprimées, notamment, en ne contraignant plus le rapport stock/production d'équilibre a être constant, en généralisant la dynamique de l'ajustement dans les équations de demande de facteurs et en incorporant les effets de la fiscalité et des prix intérieurs aux équations de prix de l'énergie. Enfin, on présentera une recherche sur la production potentielle basée sur le nouveau modèle d'offre.

Suggested Citation

  • Peter Jarrett & Raymond Torres, 1987. "A Revised Supply Block for the Major Seven Countries in INTERLINK," OECD Economics Department Working Papers 41, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:41-en

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Palle S. Andersen & Henri Bernard, 1991. "Energy shocks and the demand for energy," BIS Working Papers 17, Bank for International Settlements.
    2. Timilsina, Govinda R., 2015. "Oil prices and the global economy: A general equilibrium analysis," Energy Economics, Elsevier, vol. 49(C), pages 669-675.
    3. Benz, Ulrich & Hagist, Christian, 2008. "Technischer Anhang zu "Konjunktur und Generationenbilanz: Eine Analyse anhand des HP-Filters"," FZG Discussion Papers 23, University of Freiburg, Research Center for Generational Contracts (FZG).
    4. Timilsina, Govinda R. & Mevel, Simon & Shrestha, Ashish, 2011. "Oil price, biofuels and food supply," Energy Policy, Elsevier, vol. 39(12), pages 8098-8105.
    5. Pierre Joly, 1990. "Degrés d'utilisation des facteurs de production : impact sur les équilibres économiques," Économie et Statistique, Programme National Persée, vol. 231(1), pages 89-104.

    More about this item


    Access and download statistics


    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:oec:ecoaaa:41-en. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.