Oil Price Shocks and Real GDP Growth: Testing for Non-linearity
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Universidad de Salamanca
info
ISSN: 0195-6574, 1944-9089
Datum der Publikation: 2009
Ausgabe: 30
Nummer: 1
Art: Artikel
Andere Publikationen in: The Energy Journal
Zusammenfassung
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.