Munich Personal RePEc Archive

Credit and Oil Consumption

Arora, Vipin (2016): Credit and Oil Consumption.


Download (296kB) | Preview


Credit greases the wheels of oil consumption—it is prevalent in purchases of cars, trucks, and even the construction of factories. But the traditional view is that it affects oil consumption only through economic activity and the price of oil. I argue that credit is important in its own right. To make my case, I first show that an association between credit and oil consumption growth exists across countries and time. I then give a nod to the traditional view, and conclude by showing that changes in credit alter oil consumption—even after accounting for economic activity and oil prices.

MPRA is a RePEc service hosted by
the Munich University Library in Germany.