Oil, automobiles, and the U.S. economy
Subtitle: How much have things really changed?
By: Valerie A. Ramey, Daniel J. Vine
Contributors: Vine, Daniel J. (Daniel Jon); National Bureau of Economic Research
Series: NBER working paper series -- working paper 16067; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16067.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This paper studies the impact of oil shocks on the U.S.  economy-and on the motor vehicle industry in particular-and re-examines whether the relationship has changed over time.  We find remarkable stability in the response of aggregate real variables to oil shocks once we account for the extra costs imposed on the economy in the 1970s by price controls and a complex system of entitlements that led to some rationing and shortages.  To investigate further why the response of real variables to oil shocks has not declined over time, we focus on the motor vehicle industry, which is considered the most important channel through which oil shocks affect the economy.  We find that, contrary to common perceptions, the share of motor vehicles in total U.S.  goods production has shown little decline over time.  Moreover, within the motor vehicle industry, the effects of oil shocks on the mix of vehicle sold and on capacity utilization appear to have been proportional in recent decades to the effects observed in the 1970s"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/24/2010.

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