Oil prices and economic activity: evidence for G-7 economies based on a wavelet approach |
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Authors: | Dulce Redin Ignacio Rodriguez Juncal Cuñado |
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Institution: | Universidad de Navarra, Facultad de Económicas y Empresariales, Pamplona, Espa?a |
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Abstract: | This study examines the relationship between oil prices and economic activity in the G-7 economies during the period 1960M1–2014M07 using a wavelet approach. The results show significant differences in the relationship between these two variables depending on the frequencies. Furthermore, we find that oil price shocks affect economic activity at low frequencies (long run) in all G-7 countries, while the effect at high frequencies (short run) is limited to a few countries. |
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Keywords: | Oil prices economic activity wavelet |
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