dc.contributor.author | Aastveit, Knut Are | |
dc.contributor.author | Bjørnland, Hilde C. | |
dc.contributor.author | Thorsrud, Leif Anders | |
dc.date.accessioned | 2012-11-01T09:55:17Z | |
dc.date.available | 2012-11-01T09:55:17Z | |
dc.date.issued | 2012 | |
dc.identifier.issn | 1893-4811 | |
dc.identifier.uri | http://hdl.handle.net/11250/95379 | |
dc.description.abstract | We analyze the importance of demand from emerging and developed economies as drivers of the real price of oil over the last two
decades. Using a factor-augmented vector autoregressive (FAVAR)
model that allows us to distinguish between different groups of countries, we find that demand from emerging economies (most notably
from Asian countries) is more than twice as important as demand
from developed countries in accounting for the fluctuations in the real
price of oil and in oil production. Furthermore, we find that different
geographical regions respond differently to oil supply shocks and oil-
specific demand shocks that drive up oil prices, with Europe and North
America being more negatively affected than emerging economies in
Asia and South America. We demonstrate that this heterogeneity in
responses is not only attributable to differences in energy intensity
in production across regions but also to degree of openness and the
investment share in GDP. | no_NO |
dc.language.iso | eng | no_NO |
dc.publisher | BI Norwegian Business School | no_NO |
dc.relation.ispartofseries | CAMP Working Paper Series;2/2012 | |
dc.subject | Oil prices | no_NO |
dc.subject | emerging and developed countries | no_NO |
dc.subject | demand and supply shocks | no_NO |
dc.subject | factor augmented vector autoregressions | no_NO |
dc.title | What drives oil prices? Emerging versus developed economies | no_NO |
dc.type | Working paper | no_NO |
dc.source.pagenumber | 40 pages | no_NO |