TY  - JOUR
AU  - Marion,Nancy Peregrim
AU  - Svensson,Lars E.O.
TI  - Structural Differences and Macroeconomic Adjustment to Oil Price Increases in a Three-Country Model
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 839
PY  - 1982
Y2  - 1982
UR  - http://www.nber.org/papers/w0839
L1  - http://www.nber.org/papers/w0839.pdf
N1  - Author contact info:
Nancy Marion
Department of Economics
Dartmouth College
Hanover, NH  03755
E-Mail: Nancy.P.Marion@Dartmouth.EDU

Lars E.O. Svensson
Sveriges Riksbank
SE-103 37 Stockholm
SWEDEN
Tel: +46 8 787 0107
Fax: +46 8 21 0531
E-Mail: lars.svensson@iies.su.se
AB  - In this paper a three-country model based on intertemporal maximizing behavior is constructed in order to analyze the effects of oil price increases on welfare levels and trade balance positions. The model can also be used to assess the effects of oil price increases on the world interest rate, on the final goods terms of trade between oil importers (what is sometimes called the real exchange rate), and on output, investment and savings levels, oil imports, wages, and consumption at each date. The analysis highlights the role of structural asymmetries between oil importers in accounting for differences in trade balance responses. A number of structural differences are isolated in turn in order to determine their influence on the final goods terms of trade, which is the key factor in affecting relative trade balance positions.
ER  -