The Economic Effects of Energy Price Shocks

CFA Digest ◽  
2009 ◽  
Vol 39 (3) ◽  
pp. 37-39
Author(s):  
M.E. Ellis
Keyword(s):  
Economic Effects ◽  
Energy Price ◽  
Price Shocks

The Economic Effects of Energy Price Shocks

2008 ◽  
Vol 46 (4) ◽  
pp. 871-909 ◽  
Author(s):  
Lutz Kilian
Keyword(s):  
Stock Prices ◽  
Energy Demand ◽  
The United States ◽  
Economic Effects ◽  
Energy Price ◽  
Energy Prices ◽  
Price Shocks ◽  
Price Increases ◽  
New Energy ◽  
Key Issues

Large fluctuations in energy prices have been a distinguishing characteristic of the U.S. economy since the 1970s. Turmoil in the Middle East, rising energy prices in the United States, and evidence of global warming recently have reignited interest in the link between energy prices and economic performance. This paper addresses a number of the key issues in this debate: What are energy price shocks and where do they come from? How responsive is energy demand to changes in energy prices? How do consumer's expenditure patterns evolve in response to energy price shocks? How do energy price shocks affect U.S. real output, inflation, and stock prices? Why do energy price increases seem to cause recessions but energy price decreases do not seem to cause expansions? Why has there been a surge in the price of oil in recent years? Why has this new energy price shock not caused a recession so far? Have the effects of energy price shocks waned since the 1980s and, if so, why? As the paper demonstrates, it is critical to account for the endogeneity of energy prices and to differentiate between the effects of demand and supply shocks in energy markets when answering these questions.

Investment and Energy Price Shocks

2010 ◽  
Author(s):  
Ronald A. Ratti ◽  
Youn Seol ◽  
Kyung Hwan Yoon
Keyword(s):  
Energy Price ◽  
Price Shocks

ENERGY IN A MODEL OF FIRM ENTRY

2018 ◽  
Vol 24 (2) ◽  
pp. 231-254
Author(s):  
Soma Patra
Keyword(s):  
Negative Impact ◽  
The United States ◽  
Energy Price ◽  
Firm Entry ◽  
Energy Prices ◽  
Dsge Model ◽  
Price Shocks ◽  
Firm Level ◽  
Dynamic Stochastic ◽  
The Impact

Nine out of the last ten recessions in the United States have been preceded by an increase in the price of oil as noted by Hamilton [Palgrave Dictionary of Economics]. Given the small share of energy in gross domestic product this phenomenon is difficult to explain using standard models. In this paper, I show that firm entry can be an important transmission and amplifying channel for energy price shocks. The results from the baseline dynamic stochastic general equilibrium (DSGE) model predict a drop in output that is two times the impact in a model without entry. The model also predicts an increase in energy prices would lead to a decline in real wages, investment, consumption, and return on investment. Additionally, using US firm level data, I demonstrate that a rise in energy prices has a negative impact on firm entry as predicted by the DSGE model. This lends further support toward endogenizing firm entry when analyzing the effects of energy price shocks.

Energy price shocks and medium-term business cycles

2014 ◽  
Vol 64 ◽  
pp. 112-121 ◽  
Author(s):  
Florentine Schwark
Keyword(s):  
Business Cycles ◽  
Energy Price ◽  
Medium Term ◽  
Price Shocks

Energy price shocks and productivity slowdown

Energy Policy ◽  
1990 ◽  
Vol 18 (1) ◽  
pp. 61-65 ◽  
Author(s):  
David O. Wood
Keyword(s):  
Energy Price ◽  
Price Shocks ◽  
Productivity Slowdown
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