Production networks and the propagation of commodity price shocks / by Shutao Cao and Wei Dong.: FB3-5/2020-44E-PDF
"We examine the macro implications of commodity price shocks in a general equilibrium model with input-output linkages for a commodity-exporting small open economy. In the model, fluctuations in commodity price affect aggregate output not only through resource reallocation, currency value changes and monetary policy reaction, but also through upstream and downstream input-output linkages (both domestically and with the rest of the world). Calibrated to the Canadian economy, our model is able to explain a large part of the decline in real gross domestic product (GDP) in 2015 and 2016 following the sharp drop in commodity prices. We find that as the model economy adjusts to a commodity price shock, domestic downstream linkages and the export connection with the rest of the world play an important role"--Abstract, page ii.
Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.893224&sl=0
| Department/Agency | Bank of Canada, issuing body. |
|---|---|
| Title | Production networks and the propagation of commodity price shocks / by Shutao Cao and Wei Dong. |
| Series title | Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-44 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | "Last updated: November 2, 2020." Includes bibliographical references (pages 31-32). |
| Publishing information | Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020. ©2020 |
| Author / Contributor | Cao, Shutao, author. |
| Description | 1 online resource (ii, 41 pages) : colour illustrations. |
| Catalogue number |
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| Subject terms | Prices -- Canada -- Econometric models. Gross domestic product -- Canada -- Econometric models. Business cycles -- Canada -- Econometric models. Prix -- Canada -- Modèles économétriques. Produit intérieur brut -- Canada -- Modèles économétriques. Cycles économiques -- Canada -- Modèles économétriques. |
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