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Activity Number:
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140
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Type:
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Invited
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Date/Time:
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Monday, August 3, 2009 : 10:30 AM to 12:20 PM
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Sponsor:
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Committee on Energy Statistics
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| Abstract - #302928 |
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Title:
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Effect of Energy Import Costs on U.S. Real Gross Domestic Income
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Author(s):
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Marshall B. Reinsdorf*+
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Companies:
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Bureau of Economic Analysis
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Address:
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1441 L St. NW, Mail stop BE-40, Washington , DC, 22042,
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Keywords:
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energy prices ; energy imports ; GDP
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Abstract:
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Imports of petroleum products have grown from 0.3 percent of US GDP in 1971 to 3 percent in 2008, and imports of other types of energy are also up. As a result, volatile energy prices have important effects on US real gross domestic income (GDI). This paper extends the uses of the formula for additive contributions to change in a Fisher index to the problem of analyzing the contributions of energy import prices to real GDI. It then uses contributions to change in real GDI to gauge the economic importance of changes in energy import prices and quantities. Price increases rather than quantity increases have been the main driver in the rising expenditures on petroleum imports. Rising prices of energy imports have had substantial effects on real GDI: the petroleum price spikes of late 1973, 1980 and the first half of 2008 each subtracted more than 1 percentage point from US real income.
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