Title of article
How sensitiveareconsumerexpenditurestoretailenergyprices
Author/Authors
Paul Edelstein، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2008
Pages
14
From page
766
To page
779
Abstract
There isgrowingevidencethattheprimaryeffectofenergypriceshocksontheU.S.
economyinvolvesareductioninconsumerspending.Wequantifythedirecteffecton
real consumptionofunanticipatedchangesindiscretionaryincome,shiftsinprecau-
tionarysavings,andchangesintheoperatingcostofenergy-usingdurables.The
possibilityofasymmetriesintheresponseofrealconsumptiontoenergypriceshocksis
also considered.Wedemonstratethatlinearmodelsareconsistentwiththesymmetric
behaviorofrealconsumptionin1979(whenenergypricesincreasedsharply)andin
1986(whentheyfellsharply).Itisshownthathistoricallyenergypriceshockshave
beenanimportantfactorinexplainingU.S.realconsumptiongrowth,butbynomeans
thedominantfactor
Keywords
Energy pricesConsumptionConsumer sentimentPurchasing powerAsymmetry
Journal title
Journal of Monetary Economics
Serial Year
2008
Journal title
Journal of Monetary Economics
Record number
846330
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