Plante, Michael (2011): The long-run macroeconomic impacts of fuel subsidies in an oil-importing developing country.
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Analytical and numerical results show how the presence of a subsidy on household and firm purchases of oil products distorts long-run macroeconomic aggregates in an oil-importing developing country. Beyond leading to over-consumption of oil products these subsidies also lead to increased labor supply, a distorted emphasis on producing traded goods, and higher real wages. The subsidy also impacts the relative price of non-traded goods, causing it to fall when the non-traded sector is more oil-intensive than the traded sector and vice-versa.
|Item Type:||MPRA Paper|
|Original Title:||The long-run macroeconomic impacts of fuel subsidies in an oil-importing developing country|
|Keywords:||oil, fuel-price subsidies, developing countries, fiscal policy|
|Subjects:||E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy
O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O23 - Fiscal and Monetary Policy in Development
H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H30 - General
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy
|Depositing User:||Michael Plante|
|Date Deposited:||30. Sep 2011 17:11|
|Last Modified:||25. Oct 2015 12:49|
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