Sachs Jeffrey D. author Columbia University. Earth Institute Columbia University. Economics Columbia University. International and Public Affairs Columbia University. Health Policy and Management Columbia University. Earth Institute originator text Working papers Cambridge, Mass. National Bureau of Economic Research 1980 English This paper offers a theoretical framework for studying the interactions of energy prices and economic growth. The incorporation of energy prices and quantities in a macroeconomic setting focuses on (1) the aggregate technology; (2) the interdependence of energy producers and consumers in the world economy; and (3) the asset markets as the channel through which energy price changes affect output and capital accumulation. While several existing studies consider aspects of these issues, none provides a synthesis. In this analysis, a theoretically sound model of an oil price increase in the world economy is presented, carefully treating topics (1) - (3). The model is solved with computer simulation, as it is far too complex to yield analytical solutions. Economic theory Energy 582 http://hdl.handle.net/10022/AC:P:8221 NNC NNC 2009-09-28 16:16:44 -0400 2012-06-06 16:39:37 -0400 418 eng