Oil Shocks and the Excise Duty Tax in a DSGE Model Setting

Črt Lenarčič

Zagreb International Review of Economics and Business, 2018, vol. 21, issue 2, 49-69

Abstract: This paper sets up a small open economy general equilibrium model operating in a monetary union. Exogenous oil shocks that hit the modelled economy are alleviated by introducing a pro-cyclical excise duty tax rule on oil prices. It provides a model-based theoretical background for studying a fiscal response of curbing the negative effects of volatile global oil prices on inflation. Against this backdrop, we estimate the key parameters of the DSGE model and simulate different responses of the fiscal policy tax rule, based on different values of the responsiveness of the excise duty parameter. JEL Classification: E31, E32, E62

Keywords: Oil shocks; fiscal policy tax rule; DSGE model; inflation (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hrcak.srce.hr/index.php?show=clanak&id_clanak_jezik=306791 (text/html)
Abstract only available on-line

Related works:
Working Paper: Oil shocks and the excise duty tax in a DSGE model setting (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zag:zirebs:v:21:y:2018:i:2:p:49-69

Ordering information: This journal article can be ordered from
Zagreb International Review of Economics and Business, Faculty of Economics and Business, Trg J. F. Kennedy 6, 10000 Zagreb, Croatia.
http://www.efzg.hr/default.aspx?id=6045

DOI: 10.2478/zireb-2018-0014

Access Statistics for this article

Zagreb International Review of Economics and Business is currently edited by Soumitra Sharma

More articles in Zagreb International Review of Economics and Business from Faculty of Economics and Business, University of Zagreb Contact information at EDIRC.
Bibliographic data for series maintained by Jurica Šimurina ( this e-mail address is bad, please contact ).