A Simultaneous Equation Model for World Crude Oil and Natural Gas Markets:
A model for world crude oil and natural gas markets is estimated. It confirms low price and high income elasticities of demand for both crude oil and natural gas, which explains the market power of oil producers and price volatility following shocks. The paper establishes a relationship between oil...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2005
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Schriftenreihe: | IMF Working Papers
Working Paper No. 05/32 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | A model for world crude oil and natural gas markets is estimated. It confirms low price and high income elasticities of demand for both crude oil and natural gas, which explains the market power of oil producers and price volatility following shocks. The paper establishes a relationship between oil prices, changes in the nominal effective exchange rate (NEER) of the U.S. dollar, and the U.S. interest rates, thereby identifying demand shocks arising from monetary policy. Both interest rates and the NEER are shown to influence crude prices inversely. The results imply that crude oil prices should be included in the policy rule equation of an inflation targeting model |
Beschreibung: | 1 Online-Ressource (24 p) |
ISBN: | 145186051X 9781451860511 |
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spelling | Krichene, Noureddine Verfasser aut A Simultaneous Equation Model for World Crude Oil and Natural Gas Markets Krichene, Noureddine Washington, D.C International Monetary Fund 2005 1 Online-Ressource (24 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 05/32 A model for world crude oil and natural gas markets is estimated. It confirms low price and high income elasticities of demand for both crude oil and natural gas, which explains the market power of oil producers and price volatility following shocks. The paper establishes a relationship between oil prices, changes in the nominal effective exchange rate (NEER) of the U.S. dollar, and the U.S. interest rates, thereby identifying demand shocks arising from monetary policy. Both interest rates and the NEER are shown to influence crude prices inversely. The results imply that crude oil prices should be included in the policy rule equation of an inflation targeting model Online-Ausg http://elibrary.imf.org/view/IMF001/00114-9781451860511/00114-9781451860511/00114-9781451860511.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Krichene, Noureddine A Simultaneous Equation Model for World Crude Oil and Natural Gas Markets |
title | A Simultaneous Equation Model for World Crude Oil and Natural Gas Markets |
title_auth | A Simultaneous Equation Model for World Crude Oil and Natural Gas Markets |
title_exact_search | A Simultaneous Equation Model for World Crude Oil and Natural Gas Markets |
title_exact_search_txtP | A Simultaneous Equation Model for World Crude Oil and Natural Gas Markets |
title_full | A Simultaneous Equation Model for World Crude Oil and Natural Gas Markets Krichene, Noureddine |
title_fullStr | A Simultaneous Equation Model for World Crude Oil and Natural Gas Markets Krichene, Noureddine |
title_full_unstemmed | A Simultaneous Equation Model for World Crude Oil and Natural Gas Markets Krichene, Noureddine |
title_short | A Simultaneous Equation Model for World Crude Oil and Natural Gas Markets |
title_sort | a simultaneous equation model for world crude oil and natural gas markets |
url | http://elibrary.imf.org/view/IMF001/00114-9781451860511/00114-9781451860511/00114-9781451860511.xml |
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