Oil Price Shocks and the Asymmetric Adjustment of UK Output: a Markov-switching approach

$53.29 plus tax (Refund Policy)

Buy Article:

Abstract:

This paper examines the role played by real oil price shocks in influencing the growth in UK GDP. Our particular interest is the possibility that asymmetries might exist in such a relationship. Using Hamilton's regime-switching estimation, we consider whether oil price shocks influence both the deepness and duration of the business cycle. We find that asymmetries arise insofar as oil price appreciation is most likely to curtail the duration of the expansionary phase of the business cycle. This result is in contrast to existing studies of the oil price-macroeconomy relationship that have largely concerned the US.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/0269217032000064044

Affiliations: 1: Department of Economics, Loughborough University, Loughborough, LE11 3TU, UK. Email: m.j.holmes@lboro.ac.uk 2: Middlesex University Business School, The Burroughs, London NW4 4BT, UK. Email, p.wang@mdx.ac.uk

Publication date: January 1, 2003

More about this publication?
Related content

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more