Closer to One Great Pool? Evidence from Structural Breaks in Oil Price Differentials

Purchasing Power Parity Hypothesis In OIC Countries: Evidence From Panel Unit Root Tests With Heterogeneous Structural Breaks

Risk Management: Evidence from Oil Price Hedging in Highway Procurement

There is little empirical evidence about risk management heterogeneity across firm types. I evaluate a policy that shifts oil price risk in highway procurement from the private sector to the government, reducing the cost of hedging to zero. In a tripledifferences design using data from Kansas and Iowa, I show that firms value hedging oil price risk between the auction and commencement of work. ...

City Relative Price Dynamics in Australia: Are Structural Breaks Important?

This paper examines the dynamic behavior of relative prices across seven Australian cities by applying panel unit root test procedures with structural breaks to quarterly CPI data for 1972Q1-2011Q4. We find overwhelming evidence of convergence in city relative prices. Three common structural breaks are endogenously determined at 1985, 1995, and 2007. Further, correcting for two potential biases...

Structural breaks, tourism development, and economic growth: Evidence from Taiwan

Our paper differs from previous studies by examining the issue of whether regime changes have broken down the stability of the long-run relationships between tourism development and real GDP in Taiwan for the 1959–2003 period. We empirically investigate the co-movements and the causal relationships among real GDP, tourism development, and the real exchange rate in a multivariate model. We use t...

Income and Health Spending: Evidence from Oil Price Shocks

Health expenditures as a share of GDP in the United States have more than tripled over the past half-century. A common conjecture is that this is a consequence of rising income. We investigate this hypothesis by instrumenting for local area income with time series variation in oil prices interacted with local oil reserves. This strategy enables us to capture both partial equilibrium and local g...