Non-linear oil price transformations

Research output: Chapter in Book/Report/Conference proceedingEntry for encyclopedia/dictionary


This entry describes and motivates the mainstream non-linear oil price transformations introduced in the empirical oil economics and oil finance literatures. Such measures are commonly used as censored regressors in models to test whether only certain oil price movements matter to the economy and stock market. Then, the findings of some prominent studies that have adopted these non-linear measures in regression modelling are summarised. Subsequently, the main estimation problem that arise with regressions that make use of censored regressors are documented. Finally, coverage of some innovative directions that the non-linear oil price measures have taken in recent research are provided.
Original languageEnglish
Title of host publicationEncyclopedia of Energy Economics
PublisherEdward Elgar Publishing
Publication statusAccepted for publication - 24 Jul 2023


  • censored regressor
  • contagion
  • non-linear measure
  • oil price
  • shock
  • transformation

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