Historical Decomposition of Aggregate Demand and Supply Shocks in a Small Macro Model

1998 ◽  
Vol 64 (3) ◽  
pp. 648 ◽  
Author(s):  
James S. Fackler ◽  
W. Douglas McMillin
Keyword(s):  
Aggregate Demand ◽  
Demand And Supply ◽  
Macro Model ◽  
Supply Shocks ◽  
Historical Decomposition

DO GLOBAL CRUDE OIL MARKET SHOCKS HAVE DIFFERENTIAL EFFECTS ON US REGIONS?

2017 ◽  
Vol 23 (5) ◽  
pp. 1978-2008 ◽  
Author(s):  
Bebonchu Atems ◽  
Mark Melichar
Keyword(s):  
Crude Oil ◽  
Aggregate Demand ◽  
Personal Income ◽  
Oil Shocks ◽  
Demand And Supply ◽  
Demand Shocks ◽  
Industrial Composition ◽  
Oil Market ◽  
Supply Shocks ◽  
Market Shocks

The paper investigates whether US regions respond differently to shocks in the crude oil market. We disentangle oil market shocks into distinct demand and supply shocks and examine the response of regional personal income to these shocks. Results indicate that for most regions, oil supply shocks decrease real personal income. Except for the Rocky Mountains and the Southwest, global aggregate demand shocks are recessionary, typically about a year and a half after the shock. When we split our data into oil-producing and non-oil-producing regions, we find that global aggregate demand shocks have no effect on oil-producing regions but cause a decrease in income in non-oil-producing regions. Our analysis further indicates that oil-specific demand shocks have positive and persistent impacts on oil-producing regions but are recessionary in non-oil-producing regions. We also document significant asymmetries in the regional responses to small versus large oil shocks. In addition, the paper shows that regional differences in industrial composition explain some of the variation in the responses of real regional personal income to oil shocks.

scholarly journals Macroeconomic Shocks In The Cypriot Economy And The Emu-Area Countries

2011 ◽  
Vol 5 (6) ◽  
Author(s):  
Dimitrios Tsoukalas
Keyword(s):  
Aggregate Demand ◽  
Money Growth ◽  
Structural Vector Autoregression ◽  
Macroeconomic Shocks ◽  
Demand And Supply ◽  
Vector Autoregression Model ◽  
Supply Shocks ◽  
Output Fluctuations ◽  
Short Run ◽  
Autoregression Model

This study analyzes macroeconomic shocks in Cyprus and the EMU-area from the beginning of 1990 to the end of 2004. We examine the relative importance of aggregate demand and supply shocks along with money, in explaining short-run real output fluctuations. The empirical results for the analysis are obtained by using the framework of structural vector autoregression model (SVAR). The structural impulses in the VAR model are defined as shocks in aggregate demand, aggregate supply and money growth. Results indicate that shocks in AD, AS, the money growth are all sources of macro shocks in Cyprus and the EMU-area.

Sign in / Sign up

Export Citation Format

Share Document