Abstract
Trivariate vector error-correction models (VECMs), in conjunction with cointegrated systems, are used to examine the causality issues between U.S. employment and energy consumption. Results of the VECMs indicate a bidirectional causality between nonfarm employment and energy consumption and between total employment and energy consumption. Furthermore, the replication of prior studies, after log-transforming, adjusting for seasonality and correcting for unit roots, also produced a unidirectional causal relationship from total employment to energy consumption and a bidirectional causal relationship between nonfarm employment and energy consumption for the 1973.1−1984.6 sample period in the bivariate models. Extending the sample period further, however, completely eliminated the unidirectional causal relationship from total employment to energy consumption in the bivariate system.
Original language | English |
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Pages (from-to) | 509-516 |
Number of pages | 8 |
Journal | Energy Sources |
Volume | 17 |
Issue number | 5 |
DOIs | |
State | Published - 1995 |
Keywords
- Causality between employment and energy consumption
- Cointegration
- Unit roots
- Vector error correction model