Effects of Changes in Oil Rents and Broad Money on an AS-AD Model from 1970 to 2007

Andrea Chello
The Quant Journey
Published in
4 min readFeb 16, 2022

Source: https://en.wikipedia.org/wiki/AD%E2%80%93AS_model

Using data from a set of 5 different countries graph the effects of changes in Oil rents and Broad money on an AS-AD Model starting at equilibrium starting in 1970 and ending in 2007. As much data is missing in these records,

Using this data, and controlling for each country, fit a linear model to analyze the covariance…