The effect of oil price fluctuation on the economy: what can we learn from alternative models?

Gil Kim and David Vera

Journal of Applied Economics, 2022, vol. 25, issue 1, 856-877

Abstract: Following the exisiting literature, we present the most up-to-date estimates of oil shocks and the response of the U.S. economy. Regardless of model specifications, oil supply shocks have a negative effect on the U.S. real GDP, albeit the magnitude of responses is different across models. Aggregate demand shocks and oil-market specific shocks appear to have a positive effect on CPI, while there is little evidence of inflationary impact from the oil supply shocks. Overall, our results suggest that to evaluate the impact of an unexpected change on the price of oil on economic activity, identifying the source of the price of oil fluctuation might be one of the critical steps since the response of the GDP and CPI could vary depending on the source of the shocks.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/15140326.2022.2053940 (text/html)
Access to full text is restricted to subscribers.

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:taf:recsxx:v:25:y:2022:i:1:p:856-877

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/recs20

DOI: 10.1080/15140326.2022.2053940

Access Statistics for this article

Journal of Applied Economics is currently edited by Jorge M. Streb

More articles in Journal of Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().