Oil price shocks impact economy differently based on cause and state.
The article explores how oil-exporting countries react to changes in oil prices. By analyzing different factors like the cause of the price shocks and the state of the economy, the researchers found that the impact of oil price changes varies depending on these factors. They used a method called Threshold Structural VAR to study these relationships. The study suggests that decision-makers need to consider not only the reasons behind oil price fluctuations but also the economic conditions when making plans based on oil prices.