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dc.contributor.authorElekdag, Selimen_US
dc.contributor.authorLalonde, Renéen_US
dc.contributor.authorLaxton, Douglasen_US
dc.contributor.authorMuir, Dirken_US
dc.contributor.authorPesenti, Paoloen_US
dc.date.accessioned2011-12-15T12:56:30Z-
dc.date.available2011-12-15T12:56:30Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/53833-
dc.description.abstractWe develop a five-region version (Canada, an oil exporter, the United States, emerging Asia and Japan plus the euro area) of the Global Economy Model (GEM) encompassing production and trade of crude oil, and use it to study the international transmission mechanism of shocks that drive oil prices. In the presence of real adjustment costs that reduce the short- and medium-term responses of oil supply and demand, our simulations can account for large endogenous variations of oil prices with large effects on the terms of trade of oil-exporting versus oil-importing countries (in particular, emerging Asia), and result in significant wealth transfers between regions. This is especially true when we consider a sustained increase in productivity growth or a shift in production technology towards more capital- (and hence oil-) intensive goods in regions such as emerging Asia. In addition, we study the implications of higher taxes on gasoline that are used to reduce taxes on labor income, showing that such a policy could increase world productive capacity while being consistent with a reduction in oil consumption.en_US
dc.language.isoengen_US
dc.publisherBank of Canada Ottawaen_US
dc.relation.ispartofseriesBank of Canada Working Paper 2007,34en_US
dc.subject.jelE66en_US
dc.subject.jelF32en_US
dc.subject.jelF47en_US
dc.subject.ddc330en_US
dc.subject.keywordEconomic modelsen_US
dc.subject.keywordInflation and pricesen_US
dc.subject.keywordInternational topicsen_US
dc.subject.stwErdölförderungen_US
dc.subject.stwSchocken_US
dc.subject.stwÖlpreisen_US
dc.subject.stwTerms of Tradeen_US
dc.subject.stwInflationsrateen_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwMehr-Länder-Modellen_US
dc.subject.stwWelten_US
dc.titleOil price movements and the global economy: A model-based assessmenten_US
dc.typeWorking Paperen_US
dc.identifier.ppn531544508en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Bank of Canada Working Papers

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