Number: RL31608
Title: The Effects of Oil Shocks on the Economy: A Review of the Empirical Evidence
Authors: Marc Labonte, Government and Finance Division 
Abstract: This report surveys the econometric literature on oil shocks to provide quantitative estimates of how large an effect oil price changes have on economic activity. It also reviews the statistical robustness of these findings and discusses some of the limitations of these types of statistical analyses. Before examining the empirical record, it is useful to explore why economists believe oil shocks might affect the economy, and explore the channels through which that effect is transmitted.
Pages: 21
Date: November 15, 2007