Glomm, Gerhard; Jung, Jürgen - CESifo - 2015
We construct a dynamic model of a small open economy to analyze the effects of large energy subsidies. The model … sector production. The model is calibrated to Egypt and used to study reforms such as reductions in energy subsidies with … percent cut in energy subsidies are: (i) Steady state GDP drops in most of our experiments as less energy is used in …