The First Oil Shock, Stylized Facts, Reflections and The Easterly Puzzle in a Forty-Year Retrospective

The paper aims at understanding if the First Oil Shock has produced long-term effects to the economic system and its fundamentals, if it is still indirectly affecting the energy market and the growth rates of the Western Economies and Less Developed Countries. An historical perspective here will be used as an interpretative tool in order to discern the causes of the 1973’s events and its long-term consequences on the world economy during the two decades following the First Oil Shock. The circumstances and the causes by which the shock has developed, the happenings during the conflict, and the changes in the structure of the energy market play a key role for the analysis and therefore will be deeply investigated.