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Fierro, L.E. 
ORCID: https://orcid.org/0000-0002-4378-1375 & Martinoli, M.
(2024).
An Empirical Inquiry into the Distributional Consequences of Energy Price Shocks.
SSRN
10.2139/ssrn.5014505.
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Abstract
We estimate how energy shocks affect the functional distribution of income. Using structural vector autoregressions identified with an external instrument, we find that an increase in oil prices leads to a substantial and long-lasting decline in the wage share. Real aggregate wage income is significantly impacted, with a considerable part of this decline stemming from distributive dynamics. We also investigate possible asymmetries in the response to oil supply shocks, finding that the wage share is more sensitive to negative shocks than to positive ones. This suggests that wage earners lose from oil price hikes more than they benefit from declines.
| Item Type: | Other |
|---|---|
| Uncontrolled Keywords: | Oil shocks; Income distribution; proxy-SVAR; Asymmetries |
| Research Programs: | Advancing Systems Analysis (ASA) Advancing Systems Analysis (ASA) > Exploratory Modeling of Human-natural Systems (EM) |
| Depositing User: | Michaela Rossini |
| Date Deposited: | 05 Dec 2024 11:46 |
| Last Modified: | 05 Dec 2024 11:46 |
| URI: | https://pure.iiasa.ac.at/20168 |
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