Impacts of oil price shocks on the United States economy: A meta-analysis of the oil price elasticity of GDP for net oil-importing economies

Impacts of oil price shocks on the United States economy: A meta-analysis of the oil price... Policy makers are interested in estimates of the potential economic impacts of oil price shocks, particularly during periods of rapid and large increases that accompany severe supply shocks. Literature estimates of the economic impacts of oil price shocks, summarized by the oil price elasticity of GDP, span a very wide range due to both fundamental economic and methodological factors. This paper presents a quantitative meta-analysis of the oil price elasticity of GDP for net oil importing countries, with a focus on the United States (US). The full range of estimates of the oil price elasticity of GDP for the US in the data is − 0.124 to + 0.017, accounting for different methodologies, data and other factors. We employ a meta-regression model that controls for key determinant factors to estimate the mean and variance of the GDP elasticity across studies. We use a robust estimation technique to deal with heterogeneity of the data and well-known econometric issues that confront meta-analysis. The resulting regression model is used to simulate the oil price elasticity of GDP for the US, with a mean of − 0.020% and 68% confidence interval of − 0.035 to − 0.006, four quarters after a shock. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Energy Policy Elsevier

Impacts of oil price shocks on the United States economy: A meta-analysis of the oil price elasticity of GDP for net oil-importing economies

Loading next page...
 
/lp/elsevier/impacts-of-oil-price-shocks-on-the-united-states-economy-a-meta-xtn63gKX1g
Publisher
Elsevier
Copyright
Copyright © 2018 Elsevier Ltd
ISSN
0301-4215
D.O.I.
10.1016/j.enpol.2018.01.032
Publisher site
See Article on Publisher Site

Abstract

Policy makers are interested in estimates of the potential economic impacts of oil price shocks, particularly during periods of rapid and large increases that accompany severe supply shocks. Literature estimates of the economic impacts of oil price shocks, summarized by the oil price elasticity of GDP, span a very wide range due to both fundamental economic and methodological factors. This paper presents a quantitative meta-analysis of the oil price elasticity of GDP for net oil importing countries, with a focus on the United States (US). The full range of estimates of the oil price elasticity of GDP for the US in the data is − 0.124 to + 0.017, accounting for different methodologies, data and other factors. We employ a meta-regression model that controls for key determinant factors to estimate the mean and variance of the GDP elasticity across studies. We use a robust estimation technique to deal with heterogeneity of the data and well-known econometric issues that confront meta-analysis. The resulting regression model is used to simulate the oil price elasticity of GDP for the US, with a mean of − 0.020% and 68% confidence interval of − 0.035 to − 0.006, four quarters after a shock.

Journal

Energy PolicyElsevier

Published: Apr 1, 2018

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create lists to
organize your research

Export lists, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off