Oil Price Shocks and the Portuguese Economy Since the 1970s

FEUNL Working Paper Series No. 529

18 Pages Posted: 12 Feb 2008

See all articles by Pedro Brito Robalo

Pedro Brito Robalo

Max Planck Institute, Bonn

João Cotter Salvado

affiliation not provided to SSRN

Date Written: 2008

Abstract

This paper assesses empirically the effect of oil price shocks on Portuguese aggregate economic activity, industrial production and price level. We take the usual multivariate VAR methodology to investigate the magnitude and stability of this relationship. In doing so, we follow the approach presented in the recent literature and adopt different oil price specifications. We conclude that, as for most industrialized countries, the nature of this relationship changed in the mid-1980s. Furthermore, we show that the main Portuguese macroeconomic variables have become progressively less responsive to oil shocks and the adjustment towards equilibrium has become increasingly faster.

Suggested Citation

Robalo, Pedro Brito and Salvado, João Cotter, Oil Price Shocks and the Portuguese Economy Since the 1970s (2008). FEUNL Working Paper Series No. 529, Available at SSRN: https://ssrn.com/abstract=1091172 or http://dx.doi.org/10.2139/ssrn.1091172

Pedro Brito Robalo (Contact Author)

Max Planck Institute, Bonn ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany

HOME PAGE: http://www.coll.mpg.de/team/page/pedro_robalo

João Cotter Salvado

affiliation not provided to SSRN ( email )

No Address Available

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