Spend or Save New Wealth? Evidence from the Shale Gas Boom

The author exploits a natural experiment, the shale gas boom, to examine households’ consumption, debt, and savings decisions. First, using the world’s largest peer-to-peer credit market, the author finds that individuals reduce the use of credit to finance consumption. Households also reduce their use of the market to refinance their existing higher rate debt obligations. These decisions impact the dynamics of the market.
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