Nonlinear Effects of Global Oil Price Changes on Consumers’ Cost of Living: A Comparative Study of Net Oil Consuming and Net Oil Producing Countries
DOI:
https://doi.org/10.15353/rea.v9i1.1435Abstract
In this paper we implement a number of causality tests including linear models and nonlinear nonparametric Hiemstra-Jones and parametric Mackey–Glass to compare the causal relationship between global oil price changes and consumers’ cost of living among large net oil consuming and producing countries. Our findings indicate that despite the inconclusive relationships drawn from the extant literature, global oil price affects consumers’ cost of living mostly linearly across net oil consuming countries through the country-specific mechanisms. Such effects are reported to be nonlinear in net oil producing countries. Finally, possible nonlinear causations are asymmetric.
Downloads
Additional Files
Published
Issue
Section
License
The Review of Economic Analysis is committed to the open exchange of ideas and information.
Unlike traditional print journals which require the author to relinquish copyright to the publisher, The Review of Economic Analysis requires that authors release their work under Creative Commons Attribution Non-Commercial license. This license allows anyone to copy, distribute and transmit the work provided the use is non-commercial and appropriate attribution is given.
A 'human-readable' summary of the licence is here and the full legal text is here.