 Cross-country differences in the effects of oil shocksGert Peersman () and Ine Van Robays Energy Economics, 2012, vol. 34, issue 5, 1532-1547 Abstract: We compare the macroeconomic consequences of several types of oil shocks across a set of industrialized countries that are structurally very diverse with respect to the role of oil and other forms of energy in the economy. The results crucially depend on the underlying source of the oil price shift. When a rise in oil prices is caused by increased global economic activity or a rise in oil-specific demand, almost all countries experience respectively a temporary increase and transitory decline of real GDP. The role of oil and other forms of energy cannot explain the differences in the effects of both shocks across countries. In contrast, this role is very important to explain asymmetries in the effects of exogenous oil supply shocks. Whereas net oil and energy-importing countries typically face a permanent fall in economic activity, the impact is insignificant or even positive in net energy-exporting countries. In addition, countries that improved their net energy-position the most over time, became less vulnerable to oil supply shocks relative to other countries. Keywords: Oil prices; Vector autoregressions; Cross-country differences (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:34:y:2012:i:5:p:1532-1547 DOI: 10.1016/j.eneco.2011.11.010 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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