Oil Price Shocks and Income Inequality: Evidence From the US

View Sample PDF

Author(s): Xin Sheng (Anglia Ruskin University, UK)and Rangan Gupta (University of Pretoria, South Africa)
Copyright: 2022
Pages: 15
Source title: Handbook of Research on Energy and Environmental Finance 4.0
Source Author(s)/Editor(s): Abdul Rafay (University of Management and Technology, Pakistan)
DOI: 10.4018/978-1-7998-8210-7.ch005

Keywords: Accounting and Finance / Business Science Reference / Environment & Agriculture / Environmental Science

Purchase

View Oil Price Shocks and Income Inequality: Evidence From the US on the publisher's website for pricing and purchasing information.

Abstract

This study, using the local projections, investigates linear and nonlinear impulse responses of the United States (US) household income inequality to oil price shocks. Oil price shocks are disaggregated according to the origin to test the dynamic response of income inequality to oil price structural shocks which are contingent on the status of oil dependence in individual US states. The results, based on the linear projection model, show that oil supply shocks lead to higher income inequality in the short term, but lower-income inequality in the medium and long terms. Moreover, economic activity shocks and oil inventory demand shocks mainly exert negative impacts on income inequality over time. Both positive and negative effects of oil consumption demand shocks on income inequality are observed. The nonlinear impulse response results reveal some evidence of heterogeneous responses of income inequality to oil price shocks between high- and low-oil-dependent US states.

The IRMA Community

Research IRM

Oil Price Shocks and Income Inequality: Evidence From the US

Purchase

Abstract

Related Content

IRMA Sponsors