Crude Oil Prices and U.S. Economic Performance: Where Does the Asymmetry Reside?
Abstract
Sustained decreases in crude oil prices appear to affect the U.S. 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 price 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 U.S. dollar that had potentially important effects on the U.S. economy.Download Info
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Bibliographic Info
Article provided by International Association for Energy Economics in its journal The Energy Journal.
Volume (Year): Volume19 (1998)
Issue (Month): Number 4 ()
Pages: 107-132
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- F0 - International Economics - - General
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
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