Did U.S. Consumers Respond to the 2014–2015 Oil Price Shock? : Evidence from the Consumer Expenditure Survey / Patrick Alexander.
“The impact of oil price shocks on the U.S. economy is a topic of considerable debate. In this paper, we examine the response of U.S. consumers to the 2014–2015 negative oil price shock using representative survey data from the Consumer Expenditure Survey. We propose a difference-in-difference identification strategy based on two factors, vehicle ownership and gasoline reliance, which generate variation in exposure to oil price shocks across consumers. Our findings suggest that exposed consumers significantly increased their spending relative to non-exposed consumers when oil prices fell, and that the average marginal propensity to consume out of gasoline savings was above 1. Across products, we find that consumers increased spending especially on transportation goods and non-essential items'--Abstract, p. ii.
Record details
- ISSN: 1701-9397
- Physical Description: 1 online resource (35 pages).
- Publisher: Ottawa, ON, CA: Bank of Canada, 2018.
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General Note: | Issued as part of the desLibris documents collection. |
Restrictions on Access Note: | Access restricted to authorized users and institutions. |
Type of Computer File or Data Note: | Electronic monograph in PDF format. |
System Details Note: | Mode of access: World Wide Web. |
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