This paper examines the value of international cooperation in an oil supply disruption. The perspective is that of oil-importing countries; since the oil market is integrated internationally, the actions of one have spillover effects on the others. We focus on bulTer stock policies, with each player maximizing the present value of national income less the cost of operating the stockpile program...

How should monetary authorities react to an oil price shock? The New Keynesian literature has concluded that ensuring complete price stability is the optimal thing to do. In contrast, this paper argues that a meaningful trade-off between stabilizing inflation and the welfare relevant output gap arises in a distorted economy once one recognizes (i) that oil (energy) cannot be easily substituted ...

We examine the effect of oil price fluctuations on democratic institutions over the 1960-2007 period. We also exploit the very persistent response of income to oil price fluctuations to study the effect of persistent (oil price-driven) income shocks on democracy. Our results indicate that countries with greater net oil exports over GDP see improvements in democratic institutions following uptur...

As with most industries, tourism is susceptible to external shocks from time to time. A study employed by Browne, Edwards and Moore (2009) suggests that shocks to the Caribbean tourist industry tend to have temporary rather than permanent effects, implying that Caribbean tourism is fairly resilient to these negative influences. This paper further investigates specific shocks, namely GDP and oil...

Contemporary structural models of the global market for crude oil jointly specify precautionary and speculative demand shocks as a composite shock, named storage shock. We resolve this identification problem examine effects these distinct shocks, along with conventional supply on price oil. find that uncertainty driven is, average, primary driver real fluctuations have previously been associate...

This study seeks to explain why crude oil prices fluctuate, the main cause being the quota regime, which characterises the OPEC agreements. Given that the Saudi oil supply is inelastic in the short term, a shock in the oil market is accommodated by an immediate price change. In contrast, a dominant firm behaviour in the long term causes an output change, which is accompanied by a smaller price ...

The current study investigates the impact of real oil price shocks on Eurozone banking sector from February 2009 to 2022, using Structural Vector Autoregressive method distinguish reaction between bank indices and three structural indicators in market shocks. include global demand, supply shock, specific Our findings show that responds positively toward an oil-specific demand shock (oil price) ...