The Impact of Oil Import Price Shocks on Domestic Prices

Abstract

Cover -- Half Title -- Title -- Copyright -- Contents -- List of Tables and Diagrams -- Foreword -- Acknowledgments -- 1 INTRODUCTION -- 2 ANALYTICAL FRAMEWORK: FIXED-COEFFICIENT INPUT-OUTPUT TECHNOLOGY -- Introduction -- Analytical Framework -- Assumptions -- Domestic Price Determination -- The Crude Oil Sector -- Geometrical Exposition of the Supply-Side of the Model -- Demand Considerations -- Macro-Economic Context -- Appendix 2A: Disaggregating the Input-Output Table -- Appendix 2B: Derivation of Price and Quantity Equations under Finite Supply Elasticities -- Appendix 2C: Exchange Rate Changes, Total Spending Constant -- Appendix 2D: Exchange Rate Changes, Domestic Output Constant -- 3 ESTIMATED DOMESTIC PRICE EFFECTS: FIXED-COEFFICIENT MODEL -- Introduction -- The Import Price Shock -- Empirical Results -- Conclusion -- Appendix 3A: Proportional Change in Domestic Prices -- Appendix 3B: Data Sources -- 4 ANALYTICAL FRAMEWORK: ALLOWING FOR INTERFUEL SUBSTITUTION -- Introduction -- Analytical Framework -- Substitution Relations -- The Complete Model -- Infinitely Elastic Domestic Supply Curves -- Finite Domestic Supply Elasticities -- Solving the Model -- Appendix 4A: Exchange Rate Changes -- 5 ESTIMATED DOMESTIC PRICE EFFECTS: MODEL INCORPORATING INTERFUEL SUBSTITUTION -- Introduction -- Data Requirements -- Empirical Results -- Conclusion -- Appendix 5A: Proportional Change in Domestic Prices -- 6 CONCLUSION -- BIBLIOGRAPHY -- INDEX.