Consumer Confidence on Heating Oil Prices: An Empirical Study of their Relationship for European Union in a Nonlinear Framework

Eleni Zafeiriou, Constantinos Katrakilidis and Chrysanthi Pegiou

European Research Studies Journal, 2019, vol. XXII, issue 1, 63-90

Abstract: The present paper studies the EU consumer sentiment - heating oil stock prices relationship given the recent changes in the EU economy with the assistance of threshold cointegration. According to our findings, the existence of linearity against threshold cointegration is rejected for all the variables with the exception that of skewness, while the estimation of the threshold vector error correction model does not confirm the short-term dynamics in most cases. Having in mind that oil prices can affect economic activity in real and financial terms and is perceived as news by the consumers, the conclusion reached is in line with the existing literature, according to which consumer confidence is strongly affected by the news dissemination and by the signals of economic growth. The major practical implication of the study is the policy makers' acquisition with tools to create economic condition that improve consumer confidence and promotes economic growth

Keywords: Consumer sentiment; heating oil prices; threshold cointegration. (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.ersj.eu/journal/1408/download (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ers:journl:v:xxii:y:2019:i:1:p:63-90

Access Statistics for this article

More articles in European Research Studies Journal from European Research Studies Journal
Bibliographic data for series maintained by Marios Agiomavritis ().