Review of Economic Studies Vol. 52 No. 4 1985
Oil Price Shocks, Unemployment, Investment and the Current Account: An Intertemporal Disequilibrium Analysis
Abstract
Recent work on macroeconomics of price increases of intermediate imports while theoretically rigorous and elegant, is still unable to explain the stylized facts. This paper attempts to remedy the shortcomings of earlier papers by using a two-period model to properly analyse investment and savings behaviour and hence the current account. The model also incorporates disequilibrium in first-period labour and goods markets to compare the response of countries in different disequilibrium regimes to shocks in intermediate input prices.
- DOI
- 10.2307/2297736
- Volume
- 52
- Issue
- 4
- Pages
- 627
- Sources
- openalex crossref