Oil dependence and economic instability
By: by Luís Aguiar-Conraria, and Yi Wen
Contributors: Wen, Yi; Federal Reserve Bank of St. Louis
Series: Working paper -- 2006-060A; Working paper (Federal Reserve Bank of St. Louis : Online) -- 2006-060A.
Publisher: Federal Reserve Bank of St. Louis
Published: 2006
Place of publication: St. Louis, Mo.]
Language: eng
Format: [electronic resource] /
Description: "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, based on the estimated share of imported energy in production for several countries, show that the degree of reliance on foreign energy for many countries can easily make an otherwise determinate and stable economy indeterminate and unstable"--Federal Reserve Bank of St. Louis web site.
Notes: Title from PDF file as viewed on 11/27/2006.

Includes bibliographical references.

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