Abstract
The stabilization and allocation effects of two types of policy adopted by Canada in the 1970s to shelter the domestic economy from the 1973–74 and 1979–80 oil shocks are analyzed in this paper. After outlining the model, estimates of the effects of alternative Canadian energy pricing strategies are presented. The stabilization and allocation effects of the relatively expansionary public spending policies in Canada during the world industrial recession after the first oil shock are compared.
In preparing and revising this paper, and in building the model on which it is based, we have had exceptionally dedicated research assistance from Ardo Hansson, Michael Margolick, Tim Padmore, Reg Plummer, and Murray Smith. The main financial support for the research is from the Social Sciences and Humanities Research Council of Canada. We are also grateful for assistance with data, computing, and travel expenses from the Bank of Canada, the University of Calgary, and the University of British Columbia.
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Reference
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© 1983 The Scandinavian Journal of Economics
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Helliwell, J.F., Boothe, P.M., McRae, R.N. (1983). Stabilization, Allocation and the 1970s Oil Price Shocks. In: Calmfors, L. (eds) Long-Run Effects of Short-Run Stabilization Policy. Scandinavian Journal of Economics. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-06349-9_10
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DOI: https://doi.org/10.1007/978-1-349-06349-9_10
Publisher Name: Palgrave Macmillan, London
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