Oil and Macroeconomic Uncertainty

9 Pages Posted: 23 Jul 2015

See all articles by Andrea Bastianin

Andrea Bastianin

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS); Università degli Studi di Milano-Bicocca - Center for European Studies (CefES)

Matteo Manera

University of Milan-Bicocca, Italy - Department of Economics, Management and Statistics (DEMS); Fondazione Eni Enrico Mattei (FEEM), Milan, Italy

Date Written: June 25, 2015

Abstract

In this article we discuss the concepts of macroeconomic uncertainty, oil price uncertainty and oil price shocks. Given the relevance of oil and macroeconomic uncertainty in both academic research and the political sphere, we illustrate how economic uncertainty can be operationally defined and empirically measured. After surveying some common proxies of macroeconomic uncertainty, we describe our proposed measure of oil price uncertainty, and we illustrate the contribution of its underlying components, namely uncertainties related to oil consumption and production, economic activity and oil inventories.

Keywords: Macroeconomic Uncertainty, Oil Price Uncertainty, Oil Price Shocks, Oil Price

JEL Classification: C32, C58, E44, Q41, Q43

Suggested Citation

Bastianin, Andrea and Manera, Matteo, Oil and Macroeconomic Uncertainty (June 25, 2015). Review of Environment, Energy and Economics (Re3), June 2015. Available at SSRN: https://ssrn.com/abstract=2634326

Andrea Bastianin

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milan, 20126
Italy

Università degli Studi di Milano-Bicocca - Center for European Studies (CefES)

U6 Building
Viale Piero e Alberto Pirelli, 22
Milano, 20126
Italy

Matteo Manera (Contact Author)

University of Milan-Bicocca, Italy - Department of Economics, Management and Statistics (DEMS) ( email )

Via Bicocca degli Arcimboldi, 8
Milan, 20126
Italy
+39 02 6448 5819 (Phone)
+39 02 6448 5878 (Fax)

HOME PAGE: http://www.matteomanera.it

Fondazione Eni Enrico Mattei (FEEM), Milan, Italy ( email )

Corso Magenta, 63
Milan, 20123
Italy
+39 02 520 36944 (Phone)

HOME PAGE: http://www.feem.it

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