Oil Prices and Consumption across Countries and U.S. States
Andrea De Michelis (),
Thiago Revil T. Ferreira and
Matteo Iacoviello ()
Additional contact information
Thiago Revil T. Ferreira: https://www.federalreserve.gov/econres/thiago-r-t-ferreira.htm
No 1263, International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)
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 datasets: 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 U.S. aggregates.
Keywords: Oil prices; Consumption; Cross-country; U.S. states; Oil dependency (search for similar items in EconPapers)
JEL-codes: E32 F40 Q43 (search for similar items in EconPapers)
Pages: 36 pages
New Economics Papers: this item is included in nep-ene, nep-his and nep-mac
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: Oil Prices and Consumption across Countries and U.S. States (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgif:1263
Access Statistics for this paper
More papers in International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by ().