This paper investigates the global macroeconomic consequences of country-specific oil-supply shocks. Our contribution is both theoretical and empirical. On the theoretical side, we develop a model for the global oil market and integrate this within a compact quarterly model of the global economy...

Biographical note: Brenda Shaffer served as Research Director of the Caspian Studies Program at Harvard University from 2000 to 2006. She currently teaches political science at the University of Haifa.