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AA00260492-19860001-0001.pdf
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Title |
Title |
THE OIL PRICE DECLINE AND ECONOMIC GROWTH IN JAPAN AND THE UNITED SATATES
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JORGENSON, Dale W.
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Harvard Institute of Economic Research Harvard University
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Keio Economic Society, Keio University
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1986
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Keio economic studies
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23
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1
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1986
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1
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19
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Abstract |
The purpose of this paper is to analyze the impact of the recent oil price decline on prospects for economic growth in Japan and the United States. Oil prices are linked to economic growth through their impact on rate of technical change. While changes in technology in the two countries are not identical, there are important similarities. Higher energy prices reduce the rate of technical change in both countries and dampen economic growth rates. Lower oil prices will stimulate economic growth in both countries; the stimulus will be more substantial in Japan.
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