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Re-examining the dynamic causal oil-macroeconomy relationship
Journal article   Peer reviewed

Re-examining the dynamic causal oil-macroeconomy relationship

Shawkat Hammoudeh, Rarnaprasad Bhar, Mark Thompson and Marla A Thompson
International review of financial analysis, v 19(4), pp 298-305
01 Sep 2010

Abstract

Benchmarks Comparative analysis Crude oil prices Macroeconomics Policy making Studies
We investigate the cyclical component dynamics of US macroeconomic variables and oil benchmark prices in a regime-switching environment. We compare two different oil benchmark cycles, and the results indicate that WTI and Brent are not perfect substitutes in the US economy when it comes to dynamic causal oil-macroeconomic relationships. The results provide valuable information to policymakers regarding the impacts of major oil prices on different macroeconomic variables and their interrelations among the macroeconomic variables. [PUBLICATION ABSTRACT]

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