Journal of Finance and Economics

Journal of Finance and Economics

ISSN: 2291-4951 (Print)    ISSN: 2291-496X (Online)

Volume 10 (2018), No. 1, Pages 1-25

DOI: 10.12735/jfe.v10n1p1

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Oil Price Shocks: Bank Size and Firm Size Effects

Bert Smoluk1 

1School of Business, University of Southern Maine, Portland, Maine, USA

URL: https://doi.org/10.12735/jfe.v10n1p1

To Cite this Article     Article Views: 32     Downloads: 30  Since deposited on 2018-07-15

Abstract

This paper uses regional variation to study the propagation of oil price shocks from vector autoregressions. Using data from the lower 48 states, we find strong and distinct asymmetrical patterns in the impulse responses of personal income and housing prices from an oil price shock. Specifically, impulse responses are amplified or dampened depending on the size distributions of banks and firms within a state. More importantly, the small bank and small firm size effects normally associated with the propagation of monetary policy shocks, are shown to propagate oil price shocks. Overall, our results are indicative of multiple transmission channels.

JEL Classifications: R11, Q43, E52, G21

Keywords: Oil price shock; transmission; regional; small bank; small firm; monetary policy

To Cite this Article: Smoluk, B. (2018). Oil price shocks: Bank size and firm size effects. Journal of Finance and Economics, 10(1), 1-25. https://doi.org/10.12735/jfe.v10n1p1

Copyright © Bert Smoluk

Creative Commons License
This article is published under license to Science and Education Centre of North America. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License.

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Oil Price Shocks: Bank Size and Firm Size Effects
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