Oil prices and state unemployment

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dc.contributor.author Karaki, Mohamad B.
dc.date.accessioned 2018-03-15T07:07:53Z
dc.date.available 2018-03-15T07:07:53Z
dc.date.copyright 2018 en_US
dc.date.issued 2018-03-15
dc.identifier.issn 1944-9089 en_US
dc.identifier.uri http://hdl.handle.net/10725/7204 en_US
dc.description.abstract This paper studies the effect of oil price shocks on U.S. state-level unemployment rates. First, using a test of symmetry, I evaluate whether the relationship between oil prices and state unemployment rates is symmetric. I find no evidence against the null of symmetry after accounting for data mining. Second, I use a symmetric structural VAR model to analyze the effect of oil supply shocks, aggregate demand shocks and oil-specific demand shocks on state unemployment. I find that an adverse supply shock triggers increases in unemployment, whereas a positive aggregate demand shock reduces the unemployment rate across most U.S. states. I also show that oil-specific demand shocks have little effect on state unemployment. Finally, I dig into the historical contribution of the various oil shocks to the changes in state unemployment rates during the shale boom period. I find that aggregate demand shocks contributed the most to the change of unemployment. en_US
dc.language.iso en en_US
dc.title Oil prices and state unemployment en_US
dc.type Article en_US
dc.description.version Published en_US
dc.author.school SOB en_US
dc.author.idnumber 201304845 en_US
dc.author.department Department of Economics (ECON) en_US
dc.description.embargo N/A en_US
dc.relation.journal The Energy Journal en_US
dc.journal.volume 39 en_US
dc.journal.issue 3 en_US
dc.keywords Oil supply shocks en_US
dc.keywords Oil demand shocks en_US
dc.keywords State unemployment en_US
dc.identifier.doi http://dx.doi.org/10.5547/01956574.39.3.mkar en_US
dc.identifier.ctation Karaki, M. B. (2018). Oil Prices and State Unemployment. The Energy Journal, 39(3). en_US
dc.author.email mkaraki@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url https://www.iaee.org/energyjournal/article/3075 en_US
dc.orcid.id https://orcid.org/0000-0003-0925-9054
dc.author.affiliation Lebanese American University en_US

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