Munich Personal RePEc Archive

Asymmetries in the Responses of Regional Job Flows to Oil Price Shocks

Karaki, Mohamad (2017): Asymmetries in the Responses of Regional Job Flows to Oil Price Shocks. Published in: Economic Inquiry , Vol. 3, No. 56 (1 July 2018): pp. 1827-1845.

[img] PDF
MPRA_paper_89796.pdf

Download (319kB)

Abstract

This paper studies the effect of oil price innovations on manufacturing job flows across U.S states. First, I estimate a nonlinear structural equation model and compute impulse response functions by Monte Carlo integration. I find asymmetries in the responses of job flows to positive and negative oil price innovations. Yet, these asymmetries do not pass a test of symmetry on the impulse responses, especially after accounting for data mining. Third, I use a test for the absence of job reallocation to evaluate whether an unexpected increase in the real price of oil price triggers an important change in job reallocation. I find that oil price shocks have limited regional allocative effects.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.