Macro policy responses to oil booms and busts in the United Arab Emirates
The effects of oil shocks and macro policy changes in the United Arab Emirates are analyzed. A theoretical model is developed within the framework of the Dutch Disease literature. It contains four unique features that are applicable to the United Arab Emirates' economy. There are: (1) the presence of a large foreign labor force; (2) OPEC's oil export quotas; (3) the division of oil profits; and (4) the important role of government expenditures. The model is then used to examine the welfare effects of the above-mentioned shocks. An econometric model is then specified that conforms to the analytical model. In the econometric model the method of principal components' is applied owing to the undersized sample data. The principal components methodology is used in both the identification testing and the estimation of the structural equations. The oil and macro policy shocks are then simulated. The simulation results show that an oil-quantity boom leads to a higher welfare gain than an oil-price boom. Under certain circumstances, this finding is also confirmed by the comparative statistics that follow from the analytical model.
- Research Organization:
- Georgetown Univ., Washington, DC (United States)
- OSTI ID:
- 6938528
- Resource Relation:
- Other Information: Thesis (Ph.D.)
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
29 ENERGY PLANNING
POLICY AND ECONOMY
PETROLEUM INDUSTRY
GOVERNMENT POLICIES
SOCIO-ECONOMIC FACTORS
UNITED ARAB EMIRATES
ECONOMIC IMPACT
PRICES
PRODUCTION
ASIA
INDUSTRY
INSTITUTIONAL FACTORS
020700* - Petroleum- Economics
Industrial
& Business Aspects
294002 - Energy Planning & Policy- Petroleum
290200 - Energy Planning & Policy- Economics & Sociology