| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
Inflationary Effect of Oil-Price Shocks in an Imperfect Market: A Partial Transmission Input-output Analysis
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| Autores: |
Wu, Libo
Li, Jing
Zhang, ZhongXiang
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| Data: |
2011-04-11
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| Ano: |
2011
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| Palavras-chave: |
Oil-price Shocks
Price Transmission
Price Control
Input-output Analysis
Inflation
Industrial Structure
China
The United States
Resource /Energy Economics and Policy
Q43
Q41
Q48
O13
O53
P22
E31
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| Resumo: |
This paper aims to examine the impacts of oil-price shocks on China’s price levels. To that end, we develop a partial transmission input-output model that captures the uniqueness of the Chinese market. We hypothesize and simulate price control, market factors and technology substitution - the three main factors that restrict the functioning of a price pass-through mechanism during oil-price shocks. Using the models of both China and the U.S., we separate the impact of price control from those of other factors leading to China’s price stickiness under oil-price shocks. The results show a sharp contrast between China and the U.S., with price control in China significantly preventing oil-price shocks from spreading into its domestic inflation, especially in the short term. However, in order to strengthen the economy’s resilience to oil-price shocks, the paper suggests a gradual relaxing of price control in China.
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| Tipo: |
Working or Discussion Paper
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| Idioma: |
Inglês
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| Identificador: |
http://purl.umn.edu/102507
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| Relação: |
Fondazione Eni Enrico Mattei (FEEM)>Sustainable Development Papers
SD
29.2011
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| Formato: |
44
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