Oil Price Shocks and Real GDP Growth: Testing for Non-linearity

  1. Jimenez-Rodriguez, Rebeca 1
  1. 1 Universidad de Salamanca
    info

    Universidad de Salamanca

    Salamanca, España

    ROR https://ror.org/02f40zc51

Revista:
The Energy Journal

ISSN: 0195-6574,  1944-9089

Año de publicación: 2009

Volumen: 30

Número: 1

Tipo: Artículo

DOI: 10.5547/ISSN0195-6574-EJ-VOL30-NO1-1 GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: The Energy Journal

Resumen

This paper presents evidence of a non-linear relationship between real GDP growth and oil price changes for the US economy. We also argue that this non-linearity is not merely due to the use of data from the mid-1980s onwards, as most authors, so far, seem to believe. In fact, we find the existence of non-linearity with the use of data earlier than 1984, and even before 1977. Furthermore, we question that the non-linear transformations of oil prices proposed in the literature are the most appropriate ones for reflecting such non-linearity.