Oil prices, welfare, and the trade balance: an intertemporal approach. [Monograph]
Book
·
OSTI ID:6029427
The paper examines welfare effects and the trade-balance response to changes in the world oil prices and interest rates for a small oil-importing economy. The trade balance is mainly seen as the difference between saving and investment, and these are derived from intertemporal optimization. It is shown that the welfare effects consist of static terms of trade effects, intertemporal terms of trade effects, and employment effects. The trade balance deteriorates for temporary oil price increases, whereas its response is ambiguous for permanent oil price increases. For a fall in the world interest rate, the trade balance deteriorates, if the economy is a net borrower. 39 references, 2 figures.
- OSTI ID:
- 6029427
- Country of Publication:
- United States
- Language:
- English
Similar Records
Oil prices, welfare, and the trade balance
Structural differences and macroeconomic adjustment to oil-price increases in a three-country model. [Monograph]
Real exchange-rate adjustment and the welfare effects of oil-price decontrol. [Monograph]
Journal Article
·
Wed Oct 31 23:00:00 EST 1984
· Q. J. Econ.; (United States)
·
OSTI ID:6076373
Structural differences and macroeconomic adjustment to oil-price increases in a three-country model. [Monograph]
Book
·
Thu Dec 31 23:00:00 EST 1981
·
OSTI ID:5038958
Real exchange-rate adjustment and the welfare effects of oil-price decontrol. [Monograph]
Book
·
Wed Dec 31 23:00:00 EST 1980
·
OSTI ID:5714320