IDEAS home Printed from https://ideas.repec.org/a/rre/publsh/v23y1993i2p129-142.html
   My bibliography  Save this article

Energy Price Shocks And Regional Output And Employment

Author

Listed:
  • Douglas R. Bohi

    (Resources for the Future)

  • John R. Powers

    (Indiana University)

Abstract

This paper assesses the importance of energy price shocks to short-term fluctuations in state output and employment. In one set of cross-state regressions, the positive effects of energy production are compared with the negative effects of energy used in industrial production during the 1978-80 period of rising energy prices and the 1985-87 period of falling energy prices. A separate regression compares the effect of energy prices and macroeconomic stabilization policy on economic performance in energy-producing and nonproducing states. Overall, monetary policy appears to be more important than energy prices in explaining relative state economic performance.

Suggested Citation

  • Douglas R. Bohi & John R. Powers, 1993. "Energy Price Shocks And Regional Output And Employment," The Review of Regional Studies, Southern Regional Science Association, vol. 23(2), pages 129-142, Fall.
    • Handle: RePEc:rre:publsh:v23:y:1993:i:2:p:129-142
    as

    Download full text from publisher

    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/23.2.3/pdf/
    File Function: To View On Journal Page
    Download Restriction: no
    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/download/23.2.3/490
    File Function: To Download Article
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. William C. Gruben & Keith R. Phillips, 1989. "Diversifying Texas: recent history and prospects," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Jul, pages 1-12.
    2. Gisser, Micha & Goodwin, Thomas H, 1986. "Crude Oil and the Macroeconomy: Tests of Some Popular Notions: A Note," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 18(1), pages 95-103, February.
    3. Robert W. Gilmer, 1990. "Oil prices and manufacturing growth: their contribution to Houston's economic recovery," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Mar, pages 13-22.
    4. S. P. A. Brown & John K. Hill, 1988. "Lower Oil Prices And State Employment," Contemporary Economic Policy, Western Economic Association International, vol. 6(3), pages 60-68, July.
    5. Carolyn Sherwood-Call, 1988. "Exploring the relationships between national and regional economic fluctuations," Economic Review, Federal Reserve Bank of San Francisco, issue Sum, pages 15-25.
    6. Dallas S. Batten & Daniel L. Thornton, 1983. "Polynomial distributed lags and the estimation of the St. Louis equation," Review, Federal Reserve Bank of St. Louis, vol. 65(Apr), pages 13-25.
    7. 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.
    8. Rik Hafer, 1982. "The role of fiscal policy in the St. Louis equation," Review, Federal Reserve Bank of St. Louis, vol. 64(Jan), pages 17-22.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:rre:publsh:v:35:y:2005:i:2:p:161-86 is not listed on IDEAS
    2. Sevda Yaprakli & Fatih Kaplan, 2015. "Re-examining of the Turkish Crude Oil Import Demand with Multi-structural Breaks Analysis in the Long Run Period," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 402-407.
    3. Bohi, Douglas R. & Toman, Michael A., 2024. "What Is “Mineral Security” and What Policies Are Needed to Achieve It? Lessons from Oil Security," RFF Working Paper Series 24-16, Resources for the Future.
    4. Rao, Amar & Kumar, Satish & Gupta, Prashant & Dash, Saumya Ranjan, 2024. "Quantifying the impact of interest rate volatility on Asian energy companies: A comparative study of fossil and renewable sectors," Energy Economics, Elsevier, vol. 133(C).
    5. Thomas M. Fullerton & Teodulo Soto, 2015. "Oil Shock Impacts on the Borderplex Regional Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 14-26.
    6. Mark C. Snead, 2009. "Are the energy states still energy states?," Economic Review, Federal Reserve Bank of Kansas City, vol. 94(Q IV), pages 43-68.
    7. Molyneaux, Lynette & Brown, Colin & Foster, John & Wagner, Liam, 2016. "Resilience, coal and the macroeconomy," MPRA Paper 74516, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joao Tovar Jalles, 2009. "Do Oil Prices Matter? The Case of a Small Open Economy," Annals of Economics and Finance, Society for AEF, vol. 10(1), pages 65-87, May.
    2. Afees A. Salisu & Umar B. Ndako & Idris Adediran, 2018. "Forecasting GDP of OPEC: The role of oil price," Working Papers 044, Centre for Econometric and Allied Research, University of Ibadan.
    3. Ortiz-Cruz, Alejandro & Rodriguez, Eduardo & Ibarra-Valdez, Carlos & Alvarez-Ramirez, Jose, 2012. "Efficiency of crude oil markets: Evidences from informational entropy analysis," Energy Policy, Elsevier, vol. 41(C), pages 365-373.
    4. Awerbuch, Shimon & Sauter, Raphael, 2006. "Exploiting the oil-GDP effect to support renewables deployment," Energy Policy, Elsevier, vol. 34(17), pages 2805-2819, November.
    5. Lacheheb, Miloud & Sirag, Abdalla, 2019. "Oil price and inflation in Algeria: A nonlinear ARDL approach," The Quarterly Review of Economics and Finance, Elsevier, vol. 73(C), pages 217-222.
    6. Anand, B. & Paul, Sunil & Ramachandran, M., 2014. "Volatility Spillover between Oil and Stock Market Returns," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 49(1), pages 37-56.
    7. Lizardo, Radhamés A. & Mollick, André V., 2010. "Oil price fluctuations and U.S. dollar exchange rates," Energy Economics, Elsevier, vol. 32(2), pages 399-408, March.
    8. Thai-Ha LE & Youngho CHANG, 2011. "Dynamics Between Strategic Commodities and Financial Variables," Economic Growth Centre Working Paper Series 1104, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    9. Jaime Casassus & Freddy Higuera, 2011. "Stock Return Predictability and Oil Prices," Documentos de Trabajo 406, Instituto de Economia. Pontificia Universidad Católica de Chile..
    10. Raúl J. Crespo & José A. Zambrano, 2018. "Macroeconomic Impacts of Oil Price Shocks in Venezuela," Bristol Economics Discussion Papers 18/703, School of Economics, University of Bristol, UK.
    11. Alarudeen Aminu & Isiaka Akande Raifu, 2019. "Dynamic Nexus between Oil Revenues and Economic Growth in Nigeria," Economics Bulletin, AccessEcon, vol. 39(2), pages 1556-1570.
    12. Ozdemir, Zeynel Abidin & Gokmenoglu, Korhan & Ekinci, Cagdas, 2013. "Persistence in crude oil spot and futures prices," Energy, Elsevier, vol. 59(C), pages 29-37.
    13. Luís Aguiar-Conraria & Maria Soares, 2011. "Oil and the macroeconomy: using wavelets to analyze old issues," Empirical Economics, Springer, vol. 40(3), pages 645-655, May.
    14. Aktham I. Maghyereh & Basil Awartani & Osama D. Sweidan, 2019. "Oil price uncertainty and real output growth: new evidence from selected oil-importing countries in the Middle East," Empirical Economics, Springer, vol. 56(5), pages 1601-1621, May.
    15. Chou, Kuo-Wei & Tseng, Yi-Heng, 2016. "Oil prices, exchange rate, and the price asymmetry in the Taiwanese retail gasoline market," Economic Modelling, Elsevier, vol. 52(PB), pages 733-741.
    16. Shigeki Ono, 2011. "Oil Price Shocks and Stock Markets in BRICs," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(1), pages 29-45, June.
    17. Lang, Korbinian & Auer, Benjamin R., 2020. "The economic and financial properties of crude oil: A review," The North American Journal of Economics and Finance, Elsevier, vol. 52(C).
    18. Brown, Stephen P. A. & Yucel, Mine K., 2002. "Energy prices and aggregate economic activity: an interpretative survey," The Quarterly Review of Economics and Finance, Elsevier, vol. 42(2), pages 193-208.
    19. Turhan, M. Ibrahim & Sensoy, Ahmet & Ozturk, Kevser & Hacihasanoglu, Erk, 2014. "A view to the long-run dynamic relationship between crude oil and the major asset classes," International Review of Economics & Finance, Elsevier, vol. 33(C), pages 286-299.
    20. Le, Thai-Ha & Chang, Youngho, 2011. "Dynamic relationships between the price of oil, gold and financial variables in Japan: a bounds testing approach," MPRA Paper 33030, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v23:y:1993:i:2:p:129-142. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tammy Leonard & Lei Zhang (email available below). General contact details of provider: http://www.srsa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.