Oil Prices and Consumption across Countries and U.S. States
Andrea De Michelis (),
Thiago Ferreira and
Matteo Iacoviello ()
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Thiago Ferreira: Federal Reserve Board of Governors
International Journal of Central Banking, 2020, vol. 16, issue 2, 3-43
We study the effects of oil prices on consumption across countries and U.S. states, by exploiting the time-series and cross-sectional variation in oil dependency of these economies. We build two large data sets: one with 55 countries over the years 1975-2018, and another with all U.S. states over the period 1989-2018. We then show that oil price declines generate positive effects on consumption in oil-importing economies, while depressing consumption in oil-exporting economies. We also document that oil price increases do more harm than the good afforded by oil price decreases both in the world and in U.S. aggregates.
JEL-codes: Q43 E32 F40 (search for similar items in EconPapers)
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Working Paper: Oil Prices and Consumption across Countries and U.S. States (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ijc:ijcjou:y:2020:q:1:a:1
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