Nonlinearities and the Macroeconomic Effects of Oil Prices
This paper reviews some of the literature on the macroeconomic effects of oil price shocks with a particular focus on possible nonlinearities in the relation and recent new results obtained by Kilian and Vigfusson (2009).
I thank Rob Vigfusson for graciously sharing his data and helping me follow his code. An earlier version of this paper was circulated under the title, "Yes, the Response of the U.S. Economy to Energy Prices is Nonlinear." The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.
Hamilton, James D., 2011. "Nonlinearities And The Macroeconomic Effects Of Oil Prices," Macroeconomic Dynamics, Cambridge University Press, vol. 15(S3), pages 364-378, November. citation courtesy of