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Are Oil Shocks Permanent or Temporary? Panel Data Evidence from Crude Oil Production in 15 Countries

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  • Dmitry Burakov

    (Department of Banks, Monetary Circulation and Credit, Moscow State Institute of International Relations (MGIMO-University), Moscow, Russia)

Abstract

In this paper we explore the unit root properties of crude oil production for 15 sampled countries employing the Lagrange Multiplier (LM) panel unit root test with (and without) one structural break for the period 1990-2017. In case of applying LM univariate test without a structural break, the results are ambiguous and inconclusive with moderate support for stationarity. The results of LM panel unit root test with a structural break are significant and conclusive, stating that for a sampled panel, crude oil production is stationary.

Suggested Citation

  • Dmitry Burakov, 2019. "Are Oil Shocks Permanent or Temporary? Panel Data Evidence from Crude Oil Production in 15 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 295-298.
    • Handle: RePEc:eco:journ2:2019-02-35
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    References listed on IDEAS

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    More about this item

    Keywords

    crude oil; oil shock; unit root; panel analysis; Lagrange multiplier;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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