The business cycle and coper mining in Chile

Abstract

This article "endogenizes" the copper supply, incorporating demand for mining-sector inputs represented by other goods in the economy (specifically, intermediate goods) and also energy into a dynamic stochastic general equilibrium (dsge) model for a sample of the 2003-2013 period. The model estimation reveals that a rise of 1% in the copper price leads to a 0.16% increase in gross domestic product (gdp) over five years. The main contribution of the study is to show that, if the mining sector is treated as integrated into the rest of the economy rather than being assumed to be an enclave, as it usually is, the effects of the copper price on the Chilean economy at least double.

The evolution of mining employment during the resource boom and bust cycle in Australia

“…6 There have been many business cycle model studies. These studies have focused on the business cycle in the resource industry in general, as well as on the employment associated with macroeconomic fluctuations (Barsky and Kilian 2004;Cho and Cooley 1994;Debelle and Vickery 1998;Fuentes and Garcia 2016;Merz 1995). However, there is a lack of studies that specifically address mining employment in Australian business cycles.…”

“…One groundbreaking study on the resource sector and business cycle is the study conducted by Fuentes and Garcia (2016). Their study examines the mining sector against the Chilean business cycle by constructing and estimating a dynamic stochastic general equilibrium model that explicitly includes the connections between the mining sector and other production sectors in the remainder of the economy.…”

The Evolution of Mining Employment during the Resource Boom and Bust Cycle in Australia

“…6 There have been many business cycle model studies. These studies have focused on the business cycle in the resource industry in general, as well as on the employment associated with macroeconomic fluctuations (Barsky and Kilian 2004;Cho and Cooley 1994;Debelle and Vickery 1998;Fuentes and Garcia 2016;Merz 1995). However, there is a lack of studies that specifically address mining employment in Australian business cycles.…”