Income Elasticity of Gasoline Demand: A Meta-Analysis

Tomas Havranek and Ondrej Kokes

No 2013/02, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: In this paper we quantitatively synthesize empirical estimates of the income elasticity of gasoline demand reported in previous studies. The studies cover many countries and report a mean elasticity of 0.28 for the short run and 0.66 for the long run. We show, however, that these mean estimates are biased upwards because of publication bias—the tendency to suppress negative and insignificant estimates of the elasticity. Using mixed-effects multilevel meta-regression we filter out publication bias from the literature. Our results suggest that the income elasticity of gasoline demand is smaller than commonly thought: the corrected estimate is 0.1 for the short run and 0.46 for the long run.

Keywords: Gasoline; income elasticity; publication bias; meta-analysis (search for similar items in EconPapers)
JEL-codes: C83 Q41 (search for similar items in EconPapers)
Pages: 31pages
Date: 2013-04, Revised 2013-04
New Economics Papers: this item is included in nep-ene and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Journal Article: Income elasticity of gasoline demand: A meta-analysis (2015)
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