Template-type: ReDIF-Paper 1.0
Author-Name: Francisco  J. Sáez 
Author-Workplace-Name:  Departamento de Economía Cuantitativa, Universidad Complutense de Madrid
Author-Workplace-Homepage: https://www.ucm.es/fundamentos-analisis-economico2
Author-Name: Luis A. Puch
Author-Email: lpuch@ccee.ucm.es
Author-Homepage: https://www.ucm.es/fundamentos-analisis-economico2/luis-a-puch
Author-Person: ppu1
Author-Workplace-Name: Departamento de Economía Cuantitativa, Universidad Complutense de Madrid
Author-Workplace-Homepage: https://www.ucm.es/fundamentos-analisis-economico2
Title: Trade Shoks and Aggregate Fluctuations in an Oil-Exporting Economy
Abstract: In this paper we analyze the role of trade shocks in shaping aggregate 
	fluctuations in Venezuela from 1950 to 1995. To this end a stochastic 
	general equilibrium model of a small open economy whose main productive 
	activity rests in the exports of a single basic product is specified. 
	Shocks to the terms of trade which are directly associated to oil price 
	changes are modelled as a foreign transfer. We find that this approach gives 
	predictions that are consistent with the time series properties of Venezuela when 
	i) the income efect of consumption more than compensates the substitution effect that generates 
	the oil transfer and, ii) there is imperfect capital mobility. In particular, our model specification 
	captures the observed patterns of the main aggregates after the oil resource boom of 1974.
Classification-JEL: E32, E37
Keywords: Trade shocks, Aggregate fuctuations, Emerging economies.
Length: 31 pages
Creation-Date: 2003 
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae0301.txt
File-URL: https://eprints.ucm.es/id/eprint/7694/1/0301.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:0301