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dc.contributor.authorAminu, Nasir
dc.contributor.authorMeenagh, David
dc.contributor.authorMinford, Patrick
dc.date.accessioned2018-03-19T21:00:14Z
dc.date.available2018-03-19T21:00:14Z
dc.date.issued2018-02-02
dc.identifierhttps://repository.cardiffmet.ac.uk/bitstream/id/31395/RBC_Manuscript_The%20role%20of%20energy%20%20prices%20in%20the%20Great%20Recession%20(FINAL).pdf
dc.identifier.citationAminu, N., Meenagh, D. and Minford, P. (2018) 'The role of energy prices in the Great Recession—A two-sector model with unfiltered data', Energy Economics, 71, pp.14-34
dc.identifier.issn0140-9883
dc.identifier.urihttp://hdl.handle.net/10369/9426
dc.descriptionArticle published in Energy Economics available at https://doi.org/10.1016/j.eneco.2018.01.030
dc.description.abstractWe investigate the role of energy shocks during the Great Recession. We study the behaviour of the UK energy and non-energy intensive sectors firms in a real business cycle (RBC) model using unfiltered data. The model is econometrically estimated and tested by indirect inference. Output contraction during the Great Recession was largely caused by energy price and sector-specific productivity shocks, all of which are non-stationary and hence tend to dominate the sample variance decomposition. We also found that the channel by which the energy price shock reduces output in the model is via the terms of trade: these fall permanently when world energy prices increase and as substitutes for energy inputs are strictly limited there are few reactions via production channels. Therefore, there is no other way to balance the deteriorating current account than through lower domestic absorption.en_US
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.relation.ispartofseriesEnergy Economics;
dc.subjectOutputEnergy price shockProductivity shockGreat RecessionRBCUnfiltered dataen_US
dc.titleThe role of energy prices in the Great Recession - A two-sector model with unfiltered dataen_US
dc.typeArticleen_US
dc.typeacceptedVersion
dcterms.dateAccepted2018-01-25
rioxxterms.versionAMen_US
rioxxterms.versionofrecordhttps://doi.org/10.1016/j.eneco.2018.01.030
rioxxterms.publicationdate2018-02-02
dc.date.refFCD2018-03-19
rioxxterms.freetoread.startdate2019-02-02


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