Unemployment and Primary Commodity Prices: Theory and Evidence in a World-wide Perspective by Annalisa Cristini
This text discusses the links between primary commodity prices and the OECD rate of unemployment. It formalizes and estimates a macroeconomic model which by endogenizing both the OECD rate of unemployment and primary commodity prices, is capable of accounting of the feedback running from the primary market back to the OECD economy. Simulations are also performed to provide insights into the propagation mechanism of an oil price shock and the role played by the various factors to determine the final effect.