Oil dependence and economic instability
We show that dependence on foreign energy can increase economic instability by raising the likelihood of equilibrium indeterminacy, hence making fluctuations driven by self-fulfilling expectations easier to occur. This is demonstrated in a standard neoclassical growth model. Calibration exercises, b...
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| Format: | workingPaper |
| Language: | eng |
| Published: |
2007
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| Online Access: | http://hdl.handle.net/1822/6104 |
| Country: | Portugal |
| Oai: | oai:repositorium.sdum.uminho.pt:1822/6104 |