The Distributional Effects of Oil Supply News Shocks
Copyright policy )The Distributional Effects of Oil Supply News Shocks
This paper uses high frequency data on the distribution of US income to investigate the heterogeneous effects of oil supply news shocks. Using a FAVAR with an external instrument, We show that these shocks have large negative effects on the left and right tail of the distribution. For low income individuals, the effect is driven by a decline in wages and proprietor’s income, while a fall in corporate profits and interest income drives the effect for affluent individuals.
Supplementary data are available online at: https://www.sciencedirect.com/science/article/pii/S0165176524002532#appSB.
Data availability: Data will be made available on request.
JEL classification: C32; E32; Q54.
- Brunel University London United Kingdom
- Queen Mary University of London United Kingdom
330, FAVAR, oil shock, income inequality, external instrument identification
330, FAVAR, oil shock, income inequality, external instrument identification
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