EconPapers    
Economics at your fingertips  
 

On the Impact of Policy Uncertainty on Oil Prices: An Asymmetry Analysis

Mohsen Bahmani-Oskooee (), Hanafiah Harvey () and Farhang Niroomand ()
Additional contact information
Hanafiah Harvey: Department of Economics, Penn State University Mont Alto, Mont Alto, PA 17237, USA
Farhang Niroomand: School of Business Administration, University of Huston-Victoria, Victoria, TX 77901, USA

International Journal of Financial Studies, 2018, vol. 6, issue 1, 1-11

Abstract: Previous research has assessed the impact of policy uncertainty on a few macro variables. In this paper, we consider its impact on oil prices. Oil prices are usually determined in global markets by the law of demand and supply. Our concern in this paper is to determine which country’s policy uncertainty measure has an impact on oil prices. Using both the linear and the nonlinear Autoregressive Distributed Lag (ARDL) methods, we find that while policy uncertainty measures of Canada, China, Europe, Japan, Russia, South Korea, and the U.S. have short-run effects, short-run effects last into the long-run asymmetric effects only in the case of China. This may reflect the importance and recent surge in China’s engagement in world trade.

Keywords: policy uncertainty; oil prices; asymmetry; nonlinear ARDL approach (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 F2 F3 F41 F42 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.mdpi.com/2227-7072/6/1/12/pdf (application/pdf)
https://www.mdpi.com/2227-7072/6/1/12/ (text/html)

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:gam:jijfss:v:6:y:2018:i:1:p:12-:d:128355

Access Statistics for this article

International Journal of Financial Studies is currently edited by Prof. Dr. Nicholas Apergis

More articles in International Journal of Financial Studies from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().

 
Page updated 2019-10-08
Handle: RePEc:gam:jijfss:v:6:y:2018:i:1:p:12-:d:128355