Asymmetries in the Responses of Regional Job Flows to Oil Price Shocks

Mohamad Karaki

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies the effect of oil price innovations on manufacturing job flows across U.S states. First, I estimate a nonlinear structural equation model and compute impulse response functions by Monte Carlo integration. I find asymmetries in the responses of job flows to positive and negative oil price innovations. Yet, these asymmetries do not pass a test of symmetry on the impulse responses, especially after accounting for data mining. Third, I use a test for the absence of job reallocation to evaluate whether an unexpected increase in the real price of oil price triggers an important change in job reallocation. I find that oil price shocks have limited regional allocative effects.

Keywords: regional business cycles; job flows; oil prices. (search for similar items in EconPapers)
JEL-codes: E24 E32 Q43 (search for similar items in EconPapers)
Date: 2017-02-24, Revised 2017-08-11
New Economics Papers: this item is included in nep-ene and nep-mac
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Published in Economic Inquiry 56.3(2018): pp. 1827-1845

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Related works:
Journal Article: ASYMMETRIES IN THE RESPONSES OF REGIONAL JOB FLOWS TO OIL PRICE SHOCKS (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:89796

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