Please use this identifier to cite or link to this item: http://hdl.handle.net/1822/6841

TitleUnderstanding the large negative impact of oil shocks
Author(s)Conraria, Luís Aguiar
Wen, Yi
KeywordsOil prices
Real business cycle
Capacity utilization
Externalities
Monopolistic competition
Multiplier-accelerator
Issue dateJun-2007
PublisherWiley
JournalJournal of Money, Credit and Banking
Citation"Journal of Money, Credit and Banking". ISSN 0022-2879. 39:4 (Jun. 2007) 925-944.
Abstract(s)This paper offers a plausible explanation for the close link between oil prices and aggregate macroeconomic performance in the 1970s. Although this link has been well documented in the empirical literature, standard economic models are not able to replicate this link when actual oil prices are used to simulate the models. In particular, standard models cannot explain the depth of the recession in 1974–75 and the strong revival in 1976–78 based on the oil price movements in that period. This paper argues that a missing multiplier-accelerator mechanism from standard models may hold the key.
TypeArticle
URIhttp://hdl.handle.net/1822/6841
DOI10.1111/j.1538-4616.2007.00051.x
ISSN0022-2879
Publisher versionhttp://web.ebscohost.com/ehost/detail?vid=4&hid=7&sid=44f970e3-88c2-4d0a-af97-486b5d27469c%40sessionmgr2
Peer-Reviewedyes
AccessOpen access
Appears in Collections:NIPE - Artigos em Revistas de Circulação Internacional com Arbitragem Científica

Files in This Item:
File Description SizeFormat 
Conraria_Wen_2007_JMCB.pdfDocumento principal381,7 kBAdobe PDFView/Open

Partilhe no FacebookPartilhe no TwitterPartilhe no DeliciousPartilhe no LinkedInPartilhe no DiggAdicionar ao Google BookmarksPartilhe no MySpacePartilhe no Orkut
Exporte no formato BibTex mendeley Exporte no formato Endnote Adicione ao seu ORCID