Changes in the oil price-inflation pass-through

Valcarcel, Victor J.; Wohar, Mark E.

doi:10.1016/j.jeconbus.2013.03.001

Cited by 52 publications

(33 citation statements)

References 51 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Some, for example, probe the influences of oil price changes on economic growth (Burbidge & Harrison, ; Ferderer, ; Gisser & Goodwin, ; Herrera, Lagalo, & Wada, ; Huang, Hwang, & Peng, ; Jimenez‐Rodriguez & Sanchez, ; Jones, Leiby, & Paik, ; Killian & Vigfusson, ; Lardic & Mignon, ) and employment (Altay, Topcu, & Erdogan, ; Michieka & Gearhat, ; Uri & Boyd, ). Others address inflation, interest rates and stock market issues arising from fluctuations in crude oil prices (Albulescu, Oros, & Tiwari, ; Basher, Haug, & Sadorsky, ; Boyer & Filion, ; Elyasiani, Mansur, & Odusami, ; Faff & Brailsford, ; Huang, Masulis, & Stoll, ; Jones & Kaul, ; Nazarian & Amiri, ; Sadorsky, ; Salisu & Isah, ; Valcarcel & Wohar, ; Zhu, Li, & Li, ). In general, they employ country‐specific data and time series models and uncover that domestic macroeconomic variables seem to be susceptible to oil price changes.…”

Section: Introductionmentioning

confidence: 99%

Asymmetric effects of oil price changes on the balance of trade: Evidence from selected African countries

Baek

Kwon

2019

World Economy

View full text Add to dashboard Cite

The main new contribution of this study was to delve into the asymmetric impacts of changes in oil prices on the trade balance in the framework of six major African economies. To tackle this topic carefully, we employ three measures of external balances—oil, non‐oil and total trade balances, and assess the asymmetric response of the external balances of those six economies to oil price changes in the short and long run. Like most previous studies, we first assume the impacts of oil price fluctuations to be symmetric and employ the linear autoregressive distributed lag (ARDL) method to explore the topic. We then separate oil price hikes from oil price plunges and implement the non‐linear ARDL method to reveal that the price of crude oil has a vital role to play in the trade balances for those six African economies. Further, there is evidence of significant asymmetric impacts of oil prices typically on the oil trade balance of Africa's top oil producing countries. For the non‐oil and total trade balances, in contrast, there is little evidence of the asymmetry of oil price changes.

show abstract

Section: Introductionmentioning

confidence: 99%

Asymmetric effects of oil price changes on the balance of trade: Evidence from selected African countries

Baek

Kwon

2019

World Economy

View full text Add to dashboard Cite

show abstract

“…The lag of oil price fluctuation has little influence on inflation rate, and it is not significant even at a 10% significance level. Some studies support the idea that the volatility in oil prices do not seem to be contagious for the volatility in overall inflation [42,46]. Cavalcanti and Jalles [47] find that oil price shocks accounted for a very small fraction of the inflation and output growth rate volatility in Brazil.…”

Section: The Results Of the Modelmentioning

confidence: 91%

Estimating the Efficiency and Impacts of Petroleum Product Pricing Reforms in China

2018

View full text Add to dashboard Cite

Abstract:The efficiency and effects analysis of a new pricing mechanism would have significant policy implications for the further design of a pricing mechanism in an emerging market. Unlike most of the existing literature, which focuses on the impacts to the macro-economy, this paper firstly uses an econometrics model to discuss the efficiency of the new pricing mechanism, and then establishes an augmented Phillips curve to estimate the impact of pricing reform on inflation in China. The results show that: (1) the new pricing mechanism would strengthen the linkage between Chinese oil prices and international oil prices; (2) oil price adjustments are still inadequate in China. (3) The lag in inflation is the most important factor that affects inflation, while the impact of the Chinese government's price adjustments on inflation is limited and insignificant. In order to improve the efficiency of the petroleum products pricing mechanism and shorten lags, government should shorten the adjustment period and diminish the fluctuation threshold.

show abstract

“…Gómez-Loscos et al (2012), argue that oil price changes, which steadily lost its importance as an indicative factor for inflation between 1970 and 2000, regained their explanatory power on inflation during 2000s. Valcarcel and Wohar (2013), point out that the volatility in US inflation is not contagiously explained by the oil prices and they also suggest that oil price inflation pass-through may be a demand sided phenomenon rather than being supply sided. Gao et al (2014), except from highly energyinsensitive expenditures, fail to find a significant pass-through between oil prices and disaggregated CPI's.…”

Section: Literature Reviewmentioning

confidence: 98%

Untitled

2019

IJEFR

View full text Add to dashboard Cite

In this paper, the link between energy prices and price level is investigated from a historical perspective for the case of Ottoman Empire during the period 1885-1914. Although the unit root test results revealed that none of the variables are integrated of second or higher order, the findings of the unit root tests were conflicting. Therefore, to investigate the dynamic relations between energy prices and inflation, ARDL approach to cointegration is employed. The results of the bounds tests showed that energy prices and CPI were cointegrated. Furthermore, ARDL long-run results showed that a 1% change in inflation causes a 0.85% change in energy prices in same direction.

show abstract

Changes in the oil price-inflation pass-through

Cited by 52 publications

References 51 publications

Asymmetric effects of oil price changes on the balance of trade: Evidence from selected African countries

Asymmetric effects of oil price changes on the balance of trade: Evidence from selected African countries

Estimating the Efficiency and Impacts of Petroleum Product Pricing Reforms in China

Untitled

Contact Info

Product

Resources

About