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A note on the dynamic effects of supply and demand shocks in the crude oil market
Department of Management and Engineering, Linköping University, Linköping, Sweden.
Örebro University, Örebro University School of Business. National Institute of Economic Research, Stockholm, Sweden; School of Economics, University of Sydney, Camperdown, Australia.ORCID iD: 0000-0002-4840-7649
2024 (English)In: Applied Economics Letters, ISSN 1350-4851, E-ISSN 1466-4291Article in journal (Refereed) Epub ahead of print
Abstract [en]

In this paper, we investigate whether key relations in the crude oil market have been stable over time. This is done by estimating hybrid time-varying parameter structural Bayesian VAR models using monthly data ranging from February 1973 to May 2023. Model selection suggests that while stochastic volatility is preferred over homoscedasticity, the dynamics of the model are best described by constant parameters in all equations.

Place, publisher, year, edition, pages
Routledge, 2024.
Keywords [en]
Bayesian VAR, time-varying parameters, model selection, oil shocks
National Category
Economics
Identifiers
URN: urn:nbn:se:oru:diva-111564DOI: 10.1080/13504851.2024.2308590ISI: 001153722300001OAI: oai:DiVA.org:oru-111564DiVA, id: diva2:1837689
Available from: 2024-02-14 Created: 2024-02-14 Last updated: 2024-02-14Bibliographically approved

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Österholm, Pär

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