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Oil Price Shocks and Aggregate Fluctuations

Author

Listed:
  • Carlos de Miguel
  • Baltasar Manzano
  • José M Martin-Moreno

Abstract

This paper analyzes the effects of oil price shocks on the characteristics of the business cycle and on welfare in a small open economy, such as in the case of the Spanish economy. The results show the ability of the model to reproduce the business cycle path of the Spanish economy, especially in those periods when shocks in the price of oil were most dramatic. Furthermore, the model reproduces other regularities of the Spanish business cycle. Finally, it is shown that the increases in the relative price oil had a negative and significant effect on welfare.

Suggested Citation

  • Carlos de Miguel & Baltasar Manzano & José M Martin-Moreno, 2003. "Oil Price Shocks and Aggregate Fluctuations," The Energy Journal, , vol. 24(2), pages 47-61, April.
    • Handle: RePEc:sae:enejou:v:24:y:2003:i:2:p:47-61
    DOI: 10.5547/ISSN0195-6574-EJ-Vol24-No2-2
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    References listed on IDEAS

    as
    1. Knut Anton Mork, 1994. "Business Cycles and the Oil Market," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 15-38.
    2. Mork, Knut Anton, 1989. "Oil and Macroeconomy When Prices Go Up and Down: An Extension of Hamilton's Results," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 740-744, June.
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    More about this item

    Keywords

    oil price shocks; trade shocks; aggregate fluctuations; emerging economies; Spain;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General

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