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The effects of gasoline prices on the U.S. business cycles are investigated. In order to distinguish between gasoline … data on transport costs and gasoline prices. The results show that although standard shocks in the literature (e … supply and gasoline demand shocks, the price of gasoline is endogenously determined through a transportation sector that uses …
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This paper uses two of the IMF's structural macroeconomic models to estimate the potential global impact of the boom in unconventional oil and natural gas in the United States. The results suggest that the impact on the level of U.S. real GDP over roughly the next decade could be significant,...
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We offer a new explanation as to why international trade is so volatile in response to economic shocks. Our approach combines the uncertainty shock idea of Bloom (2009) with a model of international trade, extending the idea to the open economy. Firms import intermediate inputs from home or...
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