The Distributional Effects of Oil Supply New Shocks

Theo Drossidis, Haroon Mumtaz and Angeliki Theophilopoulou
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Haroon Mumtaz: Queen Mary University of London, School of Economics & Finance

No 975, Working Papers from Queen Mary University of London, School of Economics and Finance

Abstract: This paper uses high frequency data on the distribution of US income to investigatethe heterogeneous effects of oil supply news shocks. Using a FAVAR with an external instrument, We show that these shocks have large negative effects on the left and right tail of the distribution. For low income individuals, the effect is driven by a decline in wages and proprietor’s income, while a fall in corporate profits and interest income drives the effect for affluent individuals.

Keywords: Oil shock; income inequality; FAVAR; External instrument identification. (search for similar items in EconPapers)
JEL-codes: E32 O23 Q54 (search for similar items in EconPapers)
Date: 2024-02-19
New Economics Papers: this item is included in nep-ene and nep-inv
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The distributional effects of oil supply news shocks (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:qmw:qmwecw:975

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