The macroeconomic effects of oil shocks in three Latin American economies

Alarcón Juan Carlos, Molero Juan Carlos and Pérez de Gracia Fernando

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper we study the impact of oil price shocks on real economic activity and inflation rates in three Latin American economies (Brazil, Colombia and Peru) using a Vector AutoRegressive (VAR) model over the period 1991:M01-2014:M01. We also consider different oil shock specifications. We find a strong and prolonged increase in inflation in Brazil after an oil price shock and a negative effect with respect to economic growth. We find less significant results for Colombia and Peru that can be explained by the distorted pass-through of oil price shocks to domestic prices.

Keywords: oil price shocks; economic growth; inflation; Brazil; Colombia; Peru; VAR (search for similar items in EconPapers)
JEL-codes: F31 F41 Q43 (search for similar items in EconPapers)
Date: 2017
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Published in Cuestiones Económicas, Volume 26 (2) (2017): pp. 141-167

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:128257

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