Reduced oil revenues since 2014 are stimulating tradable sectors in oil-exporting countries. I use an open economy model with internal and external trade costs to investigate the prospects for reverse Dutch disease African countries a comparative advantage agriculture. While falling resource lead factors of production shift into agriculture, remote farmers can lose when make agricultural goods ...

Every time a local economy generates a new job by attracting a new business, additional jobs might also be created, mainly through increased demand for local goods and services. This positive effect on employment is partially offset by general equilibrium effects induced by changes in local wages and prices of local services. In this paper, I estimate the long-term employment multiplier at the ...

The Reserve Bank’s inflation target is specified in terms of CPI inflation. However, in understanding and forecasting developments in overall inflation, it can be useful to examine separate components of the CPI basket. In a small open economy such as Australia, the basket of goods and services consumed by households can be divided into ‘non-tradable’ items and ‘tradable’ items. Non-tradable it...

â â â â  libya experienced a substantial increase in oil revenue as a result of increased oil prices during the period of the late 1970s and early 1980s, and again after 2000. recent increases in oil production and the price of oil, and their positive and negative macroeconomic impacts upon key macroeconomic variables, are of considerable contemporary importance to an oil dependent economy such...

This paper explores how oil price shocks a ect scal policy and macroeconomic performance in an oil exporting small open economy. In this type of economy, oil price shocks in uence scal policy because they have nontrivial e ects on the government's budget constraint. On one hand, oil price shocks a ect revenue directly as oil revenue constitutes a large share of total revenue. On the other hand,...

Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of the cyclical movements in real exchange rates. J.E.L. Classification: F31 ∗UCLA. †Northwestern University, NBER, and Federal Reserve of Chicago. ‡Northwestern University, NBER, and CEPR.