Relationship between U.S. energy consumption and employment: Further evidence

Yong U. Glasure, Aie Rie Lee

Research output: Contribution to journalArticle

15 Scopus citations

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 languageEnglish
Pages (from-to)509-516
Number of pages8
JournalEnergy Sources
Volume17
Issue number5
DOIs
StatePublished - 1995

Keywords

  • Causality between employment and energy consumption
  • Cointegration
  • Unit roots
  • Vector error correction model

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