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Oil and the world economy: some possible futures.
- Source :
-
Philosophical Transactions of the Royal Society A: Mathematical, Physical & Engineering Sciences . 1/13/2014, Vol. 372 Issue 2006, p1-26. 26p. - Publication Year :
- 2014
-
Abstract
- This paper, using a six-region dynamic stochastic general equilibrium model of the world economy, assesses the output and current account implications of permanent oil supply shocks hitting the world economy. For modest-sized shocks and conventional production technologies, the effects are modest. But for larger shocks, for elasticities of substitution that decline as oil usage is reduced to a minimum, and for production functions in which oil acts as a critical enabler of technologies, output growth could drop significantly. Also, oil prices could become so high that smooth adjustment, as assumed in the model, may become very difficult. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 1364503X
- Volume :
- 372
- Issue :
- 2006
- Database :
- Academic Search Index
- Journal :
- Philosophical Transactions of the Royal Society A: Mathematical, Physical & Engineering Sciences
- Publication Type :
- Academic Journal
- Accession number :
- 103699784
- Full Text :
- https://doi.org/10.1098/rsta.2012.0327