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An Intertemporal Macroeconomic Model with Oil and Fiscal Policy
Department of Economics, University of Lancaster.
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
1985 (English)Report (Other academic)
Abstract [en]

In this paper a two-period two-good open economy macroeconomic model is constructed. Consumption and money holding decision are based on intertemporal optimization. In the first period (in the 'short-un') some prices are inflexible and Keynesian unemployment occurs. In the second period (in the 'long-run') all prices are flexible and markets clear. The model is used to analyze fiscal policy (paying careful attention to the implications of the government's budget constraint), increased domestic output of a resource (oil) and the consequences of a rise in the world price of the resource.

Place, publisher, year, edition, pages
Stockholm: IIES , 1985. , 33 p.
Series
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 313
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-41337OAI: oai:DiVA.org:su-41337DiVA: diva2:329514
Available from: 2010-07-12 Created: 2010-07-12 Last updated: 2010-07-12Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
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Language
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Output format
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