The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Energy Price Shocks

  • Lutz Kilian
Reference work entry


Oil price shocks have been a recurring phenomenon since the 1970s. This article reviews alternative explanations of oil price shocks. It puts the evolution of the US price of crude oil into historical perspective and compares it with that of the price of coal and natural gas.


Oil Coal Natural gas History Shocks Price determinants 

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I thank Martin Stürmer for providing access to the annual energy price data used in this article. I have also benefitted from helpful discussions with Christiane Baumeister, Ryan Kellogg and Roger Fouquet, and the comments of a referee.


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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Lutz Kilian
    • 1
  1. 1.