Gauging the Impact of Higher Capital and Oil Costs on Potential Output

Resource Information

The work Gauging the Impact of Higher Capital and Oil Costs on Potential Output represents a distinct intellectual or artistic creation found in University of Missouri-St. Louis Libraries. This resource is a combination of several types including: Work, Language Material, Books.

Label

Gauging the Impact of Higher Capital and Oil Costs on Potential Output

Statement of responsibility

Boris Cournède

Creator

• Cournede, Boris

Subject

• Economics

Language

eng

Summary

The 2007-2009 period has been characterised by an oil shock followed by a financial crisis. Higher oil prices and the prospect of higher borrowing costs are likely to reduce the productive potential of OECD economies. The present study provides illustrative numerical estimates of the impact under different scenarios using a stylised model based on a production function. In a scenario where real borrowing costs for firms return to their 1991-2001 average as opposed to staying at the level at which the capital stock in place at the end of 2007 had been invested, the impact on equilibrium GDP could be in the order of 2%. If the real oil price stays at $80 per barrel, up from the $50 average at which the capital stock in place in 2007 had been invested, the impact on equilibrium GDP could be in the order of 1%

Member of

• Working papers (Organisation for Economic Co-operation and Development. Economics Department), no. 789

Cataloging source

FR-PaOEC

Government publication

international or intergovernmental publication

Index

no index present

Literary form

non fiction

Nature of contents

dictionaries

Series statement

OECD Economics Department Working Papers,

Series volume

no.789