The long-run macroeconomic impacts of fuel subsidies in an oil-importing developing country
Analytical and numerical results show how the presence of a subsidy on household and firm purchases of oil products distorts long-run macroeconomic aggregates in an oil-importing developing country. Beyond leading to over-consumption of oil products these subsidies also lead to increased labor supply, a distorted emphasis on producing traded goods, and higher real wages. The subsidy also impacts the relative price of non-traded goods, causing it to fall when the non-traded sector is more oil-intensive than the traded sector and vice-versa.
|Date of creation:||Mar 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Arze del Granado, Francisco Javier & Coady, David & Gillingham, Robert, 2012.
"The Unequal Benefits of Fuel Subsidies: A Review of Evidence for Developing Countries,"
Elsevier, vol. 40(11), pages 2234-2248.
- David Coady & Javier Arze del Granado, 2010. "The Unequal Benefits of Fuel Subsidies; A Review of Evidence for Developing Countries," IMF Working Papers 10/202, International Monetary Fund.
- Daniel Leigh & Moataz El-Said, 2006. "Fuel Price Subsidies in Gabon; Fiscal Cost and Distributional Impact," IMF Working Papers 06/243, International Monetary Fund.
- David Coady & Taimur Baig & Joseph Ntamatungiro & Amine Mati, 2007. "Domestic Petroleum Product Prices and Subsidies; Recent Developments and Reform Strategies," IMF Working Papers 07/71, International Monetary Fund.
- John M. Piotrowski & David Coady & Justin Tyson & Rolando Ossowski & Robert Gillingham & Shamsuddin Tareq, 2010. "Petroleum Product Subsidies; Costly, Inequitable, and On the Rise," IMF Staff Position Notes 2010/05, International Monetary Fund.
- Hafedh Bouakez & Nooman Rebei & Désiré Vencatachellum, 2008. "Optimal Pass-Through of Oil Prices in an Economy with Nominal Rigidities," Cahiers de recherche 0831, CIRPEE.
- Robert Gillingham & David Locke Newhouse & David Coady & Kangni Kpodar & Moataz El-Said & Paulo A. Medas, 2006. "The Magnitude and Distribution of Fuel Subsidies; Evidence From Bolivia, Ghana, Jordan, Mali, and Sri Lanka," IMF Working Papers 06/247, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:33823. 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: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.