Economics at your fingertips  

Can oil shocks explain asymmetries in the US Business Cycle?

Hans-Martin Krolzig () and Michael Clements

Empirical Economics, 2002, vol. 27, issue 2, 185-204

Abstract: We consider whether oil prices can account for business cycle asymmetries. We test for asymmetries based on the Markov switching autoregressive model popularized by Hamilton (1989), using the tests devised by Clements and Krolzig (2000). We find evidence against the conventional wisdom that recessions are more violent than expansions: while some part of the downturn in economic activity that characterises recessionary periods can be attributed to dramatic changes in the price of oil, post-War US economic growth is characterized by the steepness of expansions.

Keywords: Oil prices; Business cycle asymmetries; Markov-switching models (search for similar items in EconPapers)
JEL-codes: E32 C32 E24 (search for similar items in EconPapers)
Date: 2002-04-26
Note: Received: December 2000/Final Version Received: September 2001
References: Add references at CitEc
Citations: View citations in EconPapers (33) Track citations by RSS feed

Downloads: (external link) (application/pdf)
Access to the full text of the articles in this series is restricted

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:

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2020-10-27
Handle: RePEc:spr:empeco:v:27:y:2002:i:2:p:185-204