The Indirect Effects of Oil Price on Consumption Through Assets
This research considers how oil price can indirectly affect consumption through asset prices of stock and house. Using the theory of consumption wealth effect, this research shows that, unexpectedly, a rise in oil price would lead to increase in consumption. The research uses the data of three OECD...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2022-01-01
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| Series: | International Journal of Energy Economics and Policy |
| Subjects: | |
| Online Access: | https://econjournals.com/index.php/ijeep/article/view/12528 |
| _version_ | 1797917071392112640 |
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| author | Seyedeh Fatemeh Razmi Leila Torki Seyed Mohammad Javad Razmi Ehsan Mohaghegh Dowlatabadi |
| author_facet | Seyedeh Fatemeh Razmi Leila Torki Seyed Mohammad Javad Razmi Ehsan Mohaghegh Dowlatabadi |
| author_sort | Seyedeh Fatemeh Razmi |
| collection | DOAJ |
| description | This research considers how oil price can indirectly affect consumption through asset prices of stock and house. Using the theory of consumption wealth effect, this research shows that, unexpectedly, a rise in oil price would lead to increase in consumption. The research uses the data of three OECD countries of France, Canada and the United States from quarter 1st 1997 to quarter 3rd 2017 and vector autoregression model. Empirical results prove that a positive shock to oil price has a positive indirect effect on consumptions of France and Canada via both asset prices. The indirect effect of oil price on US consumption only exists through stock price. The duration of indirect effect of oil price on consumption depends on dependency of consumption to asset prices in each country. |
| first_indexed | 2024-04-10T13:08:26Z |
| format | Article |
| id | doaj.art-99d0479840e44ede8927292c1e3a6790 |
| institution | Directory Open Access Journal |
| issn | 2146-4553 |
| language | English |
| last_indexed | 2024-04-10T13:08:26Z |
| publishDate | 2022-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj.art-99d0479840e44ede8927292c1e3a67902023-02-15T16:12:52ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532022-01-0112110.32479/ijeep.12528The Indirect Effects of Oil Price on Consumption Through AssetsSeyedeh Fatemeh Razmi0Leila Torki1Seyed Mohammad Javad Razmi2Ehsan Mohaghegh Dowlatabadi3Independent Researcher, Mashhad, Iran,Department of Economics, Faculty of Administrative Sciences and Economics, University of Isfahan, Isfahan, Iran,Ferdowsi University of Mashhad (FUM), Mashhad, Iran4PhD Student of Economics at Syracuse University, New York, USAThis research considers how oil price can indirectly affect consumption through asset prices of stock and house. Using the theory of consumption wealth effect, this research shows that, unexpectedly, a rise in oil price would lead to increase in consumption. The research uses the data of three OECD countries of France, Canada and the United States from quarter 1st 1997 to quarter 3rd 2017 and vector autoregression model. Empirical results prove that a positive shock to oil price has a positive indirect effect on consumptions of France and Canada via both asset prices. The indirect effect of oil price on US consumption only exists through stock price. The duration of indirect effect of oil price on consumption depends on dependency of consumption to asset prices in each country.https://econjournals.com/index.php/ijeep/article/view/12528Oil priceconsumption wealth effectasset priceshouse price |
| spellingShingle | Seyedeh Fatemeh Razmi Leila Torki Seyed Mohammad Javad Razmi Ehsan Mohaghegh Dowlatabadi The Indirect Effects of Oil Price on Consumption Through Assets International Journal of Energy Economics and Policy Oil price consumption wealth effect asset prices house price |
| title | The Indirect Effects of Oil Price on Consumption Through Assets |
| title_full | The Indirect Effects of Oil Price on Consumption Through Assets |
| title_fullStr | The Indirect Effects of Oil Price on Consumption Through Assets |
| title_full_unstemmed | The Indirect Effects of Oil Price on Consumption Through Assets |
| title_short | The Indirect Effects of Oil Price on Consumption Through Assets |
| title_sort | indirect effects of oil price on consumption through assets |
| topic | Oil price consumption wealth effect asset prices house price |
| url | https://econjournals.com/index.php/ijeep/article/view/12528 |
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