| ID | 111443 |
| Title Proper | Nature of oil shocks and the global economy |
| Language | ENG |
| Author | Archanskaia, Elizaveta ; Creel, Jerome ; Hubert, Paul |
| Publication | 2012. |
| Summary / Abstract (Note) | This paper identifies the main driving force behind oil price shocks in 1970-2006 by applying a simple identification strategy of supply-driven and demand-driven price shocks. The identification hypothesis states that supply-driven oil price shocks have a negative impact on the macroeconomic activity of countries, which are net consumers of oil while demand-driven oil price shocks do not have negative effects. In order to identify global demand-driven shocks, a weighted aggregate GDP series of countries, which are net consumers of oil, is constructed over 1970-2006. The key result is that the main driving force behind oil price shocks has changed from supply-driven shocks in 1970-1992 to demand-driven shocks in 1992-2006. |
| `In' analytical Note | Energy Policy Vol. 42; Mar 2012: p.509-520 |
| Journal Source | Energy Policy Vol. 42; Mar 2012: p.509-520 |
| Key Words | Oil Shocks ; Oil Demand Shocks ; Oil Supply Shocks |