Short-run energy-economy interactions in Egypt
This paper discusses the short-run adjustment mechanism of the Egyptian economy to changes in the domestic price of oil. The effects of oil price increases have been analysed in the framework of a short-run macroeconomic model with an explicit treatment of energy. The results suggest that a reductio...
| Main Authors: | , |
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| Format: | Article |
| Language: | en_US |
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© Elsevier B.V.
2022
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| Online Access: | https://doi.org/10.1016/0305-750X(84)90075-5 https://hdl.handle.net/1721.1/141496 |
| _version_ | 1811073083598962688 |
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| author | Choucri, Nazli Supriya, Lahiri |
| author_facet | Choucri, Nazli Supriya, Lahiri |
| author_sort | Choucri, Nazli |
| collection | MIT |
| description | This paper discusses the short-run adjustment mechanism of the Egyptian economy to changes in the domestic price of oil. The effects of oil price increases have been analysed in the framework of a short-run macroeconomic model with an explicit treatment of energy. The results suggest that a reduction in petroleum use induced by a rise in the price of oil will impose difficult adjustment problems for the economy in the short run in terms of increase in inflation, fall in the share of wage income and sharp output losses. The analysis also indicates that energy demand management through appropriate petroleum pricing strategy cannot bring about desirable impacts on the economy unless efforts are made to reduce cost pressures originating from other energy sectors. |
| first_indexed | 2024-09-23T09:28:20Z |
| format | Article |
| id | mit-1721.1/141496 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T09:28:20Z |
| publishDate | 2022 |
| publisher | © Elsevier B.V. |
| record_format | dspace |
| spelling | mit-1721.1/1414962022-05-05T16:40:14Z Short-run energy-economy interactions in Egypt Choucri, Nazli Supriya, Lahiri This paper discusses the short-run adjustment mechanism of the Egyptian economy to changes in the domestic price of oil. The effects of oil price increases have been analysed in the framework of a short-run macroeconomic model with an explicit treatment of energy. The results suggest that a reduction in petroleum use induced by a rise in the price of oil will impose difficult adjustment problems for the economy in the short run in terms of increase in inflation, fall in the share of wage income and sharp output losses. The analysis also indicates that energy demand management through appropriate petroleum pricing strategy cannot bring about desirable impacts on the economy unless efforts are made to reduce cost pressures originating from other energy sectors. 2022-04-02T12:53:44Z 2022-04-02T12:53:44Z 1984-08 Article https://doi.org/10.1016/0305-750X(84)90075-5 https://hdl.handle.net/1721.1/141496 Choucri, N., & Lahiri, S. (1984). Short-run energy-economy interactions in Egypt. World Development, 12(8), 799–820. en_US Attribution-NonCommercial-NoDerivs 3.0 United States http://creativecommons.org/licenses/by-nc-nd/3.0/us/ application/pdf © Elsevier B.V. |
| spellingShingle | Choucri, Nazli Supriya, Lahiri Short-run energy-economy interactions in Egypt |
| title | Short-run energy-economy interactions in Egypt |
| title_full | Short-run energy-economy interactions in Egypt |
| title_fullStr | Short-run energy-economy interactions in Egypt |
| title_full_unstemmed | Short-run energy-economy interactions in Egypt |
| title_short | Short-run energy-economy interactions in Egypt |
| title_sort | short run energy economy interactions in egypt |
| url | https://doi.org/10.1016/0305-750X(84)90075-5 https://hdl.handle.net/1721.1/141496 |
| work_keys_str_mv | AT choucrinazli shortrunenergyeconomyinteractionsinegypt AT supriyalahiri shortrunenergyeconomyinteractionsinegypt |