Output and Energy Prices Fluctuations in Response to Market Shocks: System Dynamic Modeling
Regardless of the fact, whether governments of particular country implemented the strong lockdown measures to prevent the spread of COVID-19 or not, the economies of each country all over the word have been suffered considerably due to the shocks caused by the pandemic. We observed slowdown of econ...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2023-03-01
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| Series: | International Journal of Energy Economics and Policy |
| Subjects: | |
| Online Access: | https://econjournals.com/index.php/ijeep/article/view/13371 |
| _version_ | 1797860887750508544 |
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| author | Valeriy Kozytskyy Marianna Oliskevych Galyna Beregova Nelya Pabyrivska |
| author_facet | Valeriy Kozytskyy Marianna Oliskevych Galyna Beregova Nelya Pabyrivska |
| author_sort | Valeriy Kozytskyy |
| collection | DOAJ |
| description |
Regardless of the fact, whether governments of particular country implemented the strong lockdown measures to prevent the spread of COVID-19 or not, the economies of each country all over the word have been suffered considerably due to the shocks caused by the pandemic. We observed slowdown of economic activity, macroeconomic instability and shifts in consumption preferences supplemented by rising unemployment as well as significant fluctuation of demand and production capability. The research problem addressed in this paper focuses on dynamic properties of output and inflation fluctuations that occur in response to economic shocks different magnitudes and types. We use a system dynamic approach and constructs two system dynamic models to examine the dynamics of output, prices, wage and inflation. The paper indicates ranges of relevant parameters’ values that correspond with sensitivity of output to demand and production capability changes related to possibility of reaching new equilibrium point. To explore the variety of prices and wage behavior in response to shocks we evaluate distinguish possible phase diagrams associated with stable node, stable focus, circle, unstable focus and unstable node. The results is a contribution to discussion of the policy issues related to mitigation of recession caused by unpredictable and strong shocks.
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| first_indexed | 2024-04-09T21:53:13Z |
| format | Article |
| id | doaj.art-8192072dd17d460fb966bd520f2a6b51 |
| institution | Directory Open Access Journal |
| issn | 2146-4553 |
| language | English |
| last_indexed | 2024-04-09T21:53:13Z |
| publishDate | 2023-03-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj.art-8192072dd17d460fb966bd520f2a6b512023-03-24T10:15:02ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532023-03-0113210.32479/ijeep.13371Output and Energy Prices Fluctuations in Response to Market Shocks: System Dynamic ModelingValeriy Kozytskyy0Marianna Oliskevych1Galyna Beregova2Nelya Pabyrivska 3Ivan Franko National University of Lviv, Ukraine,Ivan Franko National University of Lviv, Ukraine,Lviv Polytechnic National University, Ukraine.Lviv Polytechnic National University, Ukraine. Regardless of the fact, whether governments of particular country implemented the strong lockdown measures to prevent the spread of COVID-19 or not, the economies of each country all over the word have been suffered considerably due to the shocks caused by the pandemic. We observed slowdown of economic activity, macroeconomic instability and shifts in consumption preferences supplemented by rising unemployment as well as significant fluctuation of demand and production capability. The research problem addressed in this paper focuses on dynamic properties of output and inflation fluctuations that occur in response to economic shocks different magnitudes and types. We use a system dynamic approach and constructs two system dynamic models to examine the dynamics of output, prices, wage and inflation. The paper indicates ranges of relevant parameters’ values that correspond with sensitivity of output to demand and production capability changes related to possibility of reaching new equilibrium point. To explore the variety of prices and wage behavior in response to shocks we evaluate distinguish possible phase diagrams associated with stable node, stable focus, circle, unstable focus and unstable node. The results is a contribution to discussion of the policy issues related to mitigation of recession caused by unpredictable and strong shocks. https://econjournals.com/index.php/ijeep/article/view/13371output fluctuationsystem dynamic modelenergy pricesshock |
| spellingShingle | Valeriy Kozytskyy Marianna Oliskevych Galyna Beregova Nelya Pabyrivska Output and Energy Prices Fluctuations in Response to Market Shocks: System Dynamic Modeling International Journal of Energy Economics and Policy output fluctuation system dynamic model energy prices shock |
| title | Output and Energy Prices Fluctuations in Response to Market Shocks: System Dynamic Modeling |
| title_full | Output and Energy Prices Fluctuations in Response to Market Shocks: System Dynamic Modeling |
| title_fullStr | Output and Energy Prices Fluctuations in Response to Market Shocks: System Dynamic Modeling |
| title_full_unstemmed | Output and Energy Prices Fluctuations in Response to Market Shocks: System Dynamic Modeling |
| title_short | Output and Energy Prices Fluctuations in Response to Market Shocks: System Dynamic Modeling |
| title_sort | output and energy prices fluctuations in response to market shocks system dynamic modeling |
| topic | output fluctuation system dynamic model energy prices shock |
| url | https://econjournals.com/index.php/ijeep/article/view/13371 |
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