Crude oil prices and U. S. economic performance: Where does the asymmetry reside
- Stanford Univ., CA (United States). Terman Engineering Center
Sustained decreases in crude oil prices appear to affect the US economy differently than sustained increases. This paper shows that a significant part of the observed asymmetry is due to adjustments within the energy sector and not within the rest of the economy. In particular, sustained decreases in petroleum product or general energy prices do not appear to have qualitatively different macroeconomic impacts than do sustained price increases. The singular focus on crude oil prices changes in previous studies is misplaced. Moreover, the 1986 oil price collapse did not operate in isolation from other important events. As crude oil prices fell in the 1986 period, other factors caused a major devaluation of the US dollar that had potentially important effects on the US economy.
- Sponsoring Organization:
- USDOE; USDOE, Washington, DC (United States)
- OSTI ID:
- 6443685
- Journal Information:
- Energy Journal, Vol. 19:4; ISSN 0195-6574
- Country of Publication:
- United States
- Language:
- English
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