On the asymmetric effects of oil price changes on Alaska oil tax revenue

Alaska depends on oil tax revenue for more than 90% of the state budget. In this article, we apply the nonlinear autoregressive distributed lag (ARDL) approach of to test whether the effect of changes in oil prices on Alaska's oil reven ues is symmetric or asymmetric. The results show that oil prices have an asymmetric effect on Alaska's oil revenues in the long run, though not in the short run. Additionally, declines in oil prices have a more substantial long-run effect than increases in oil prices.