Information about this author at RePEc
NBER Working Papers and Publications
|September 2017||The U.S. Shale Oil Boom, the Oil Export Ban, and the Economy: A General Equilibrium Analysis|
with Nida Çakir Melek, Mine K. Yücel: w23818
This paper examines the effects of the U.S. shale oil boom in a two-country DSGE model where countries produce crude oil, refined oil products, and a non-oil good. The model incorporates different types of crude oil that are imperfect substitutes for each other as inputs into the refining sector. The model is calibrated to match oil market and macroeconomic data for the U.S. and the rest of the world (ROW). We investigate the implications of a significant increase in U.S. light crude oil production similar to the shale oil boom. Consistent with the data, our model predicts that light oil prices decline, U.S. imports of light oil fall dramatically, and light oil crowds out the use of medium crude by U.S. refiners. In addition, fuel prices fall and U.S. GDP rises. We then use our model to ex...
|July 2009||Dynamics of Fiscal Financing in the United States|
with Eric M. Leeper, Nora Traum: w15160
Dynamic stochastic general equilibrium models that include policy rules for government spending, lump-sum transfers, and distortionary taxation on labor and capital income and on consumption expenditures are fit to U.S. data under a variety of specifications of fiscal policy rules. We obtain several results. First, the best fitting model allows a rich set of fiscal instruments to respond to stabilize debt. Second, responses of aggregate variables to fiscal policy shocks under rich fiscal rules can vary considerably from responses that allow only non-distortionary fiscal instruments to finance debt. Third, based on estimated policy rules, transfers, capital tax rates, and government spending have historically responded strongly to government debt, while labor taxes have responded more weakl...
Published: Leeper, Eric M. & Plante, Michael & Traum, Nora, 2010.
"Dynamics of fiscal financing in the United States,"
Journal of Econometrics,
Elsevier, vol. 156(2), pages 304-321, June.
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