Article ID Journal Published Year Pages File Type
996869 Energy Policy 2006 6 Pages PDF
Abstract

This paper investigates the existence of a long-term relationship between oil prices and GDP in 12 European countries. To account for the fact that economic activity responds asymmetrically to oil price shocks, we propose an approach based on asymmetric cointegration. Our results show that, while standard cointegration is rejected, there is evidence for asymmetric cointegration between oil prices and GDP in the majority of the considered European countries.

Related Topics
Physical Sciences and Engineering Energy Energy Engineering and Power Technology
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