• Corpus ID: 22228493

Retail Energy Prices and Consumer Expenditures

@article{Edelstein2007RetailEP,
  title={Retail Energy Prices and Consumer Expenditures},
  author={Paul Edelstein and Lutz Kilian},
  journal={Macroeconomics eJournal},
  year={2007}
}
In the absence of a major disruption in spending by consumers and firms, the effects of energy price shocks on the economy will be small. In this paper, we quantify the direct effect on real consumption of (1) unanticipated changes in discretionary income, (2) shifts in precautionary savings, and (3) changes in the operating cost of energy-using durables. We also evaluate the evidence for asymmetries in the response of real consumption that would be expected, for example, if shifting… 

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