Energy prices and the U. S. economy, 1972--1976

Journal Article · Sun Oct 01 04:00:00 EDT 1978 · Nat. Resour. J.; (United States)

OSTI ID:6220902

Hudson, E A; Jorgenson, D W

Higher energy prices following the 1973 oil embargo are shown to have seriously impacted the U. S. economy to the extent of slowing energy consumption growth by 8.8 percent. Analysis of the 1972--1976 period reveals a 3.2 percent drop in gross national product and a general slowdown in the economy, causing declines in capital stocks and employment and a rise in inflation. A dynamic general-equilibrium economic model is used to study production activities in 10 sectors. The increase in energy prices is shown to have altered both the relative prices of goods according to their energy intensity and the relative demand for goods. Structural adjustments were made in investment levels and the expansion of employment into labor-intensive areas. 12 tables, 7 footnotes.

• Research Organization: Data Resources, Inc., Cambridge, MA
• OSTI ID: 6220902
• Journal Information: Nat. Resour. J.; (United States), Journal Name: Nat. Resour. J.; (United States) Vol. 18:4; ISSN NRJOA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290100 -- Energy Planning & Policy-- Energy Analysis & Modeling
290200* -- Energy Planning & Policy-- Economics & Sociology
CAPITAL
CHARGES
DEMAND FACTORS
ECONOMIC ANALYSIS
ECONOMIC IMPACT
ECONOMICS
EMPLOYMENT
ENERGY CONSUMPTION
ENERGY SHORTAGES
ENERGY SUPPLIES
GROSS NATIONAL PRODUCT
PRODUCTIVITY