Macro policy responses to oil booms and busts in the United Arab Emirates
Abstract
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.
- Authors:
- Publication Date:
- Research Org.:
- Georgetown Univ., Washington, DC (United States)
- OSTI Identifier:
- 6938528
- Resource Type:
- Miscellaneous
- Resource Relation:
- Other Information: Thesis (Ph.D.)
- Country of Publication:
- United States
- Language:
- English
- Subject:
- 02 PETROLEUM; 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
Citation Formats
Al-Mutawa, A K. Macro policy responses to oil booms and busts in the United Arab Emirates. United States: N. p., 1991.
Web.
Al-Mutawa, A K. Macro policy responses to oil booms and busts in the United Arab Emirates. United States.
Al-Mutawa, A K. 1991.
"Macro policy responses to oil booms and busts in the United Arab Emirates". United States.
@article{osti_6938528,
title = {Macro policy responses to oil booms and busts in the United Arab Emirates},
author = {Al-Mutawa, A K},
abstractNote = {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.},
doi = {},
url = {https://www.osti.gov/biblio/6938528},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Tue Jan 01 00:00:00 EST 1991},
month = {Tue Jan 01 00:00:00 EST 1991}
}