Herrera, Ana María; Lagalo, Latika Gupta; Wada, Tatsuma - In: Journal of International Money and Finance 50 (2015) C, pp. 108-133
It has been common to assume that the relationship between economic activity and oil prices is asymmetric. Theoretical underpinnings for this asymmetry include costly sectoral reallocation, partial equilibrium models of irreversible investment, and some version of precautionary savings. Yet,...