Publication Type
Journal Article
Version
submittedVersion
Publication Date
5-2016
Abstract
This paper studies the impact of a wide set of energy price shocks on exter- nal balances using a two-country framework comprising multiple sectors and en- dogenous energy production with convex costs. The paper disentangles different demand and supply shocks in the energy market through their distinct impact on external balances. It provides a theoretical confirmation of Kilian et al. (2009) and a theoretical foundation to the determining role of the non-energy trade balance in the transmission of energy price shocks. The presence of durables also highlights the immediate channel through which energy prices impact the non-energy trade balance.
Keywords
energy, energy price shock, trade, DSGE model, external balances
Discipline
International Economics | Macroeconomics
Publication
Canadian Journal of Economics
Volume
49
Issue
2
First Page
789
Last Page
814
Identifier
10.1111/caje.12214
Publisher
Wiley
Embargo Period
7-3-2016
Citation
HUYNH, Bao Tan.
Energy Price Shocks and External Balances. (2016). Canadian Journal of Economics. 49, (2), 789-814.
Available at: https://ink.library.smu.edu.sg/soe_research/1897
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1111/caje.12214