EconPapers    
Economics at your fingertips  
 

What Do Consumers Believe About Future Gasoline Prices?

Soren Anderson, Ryan Kellogg and James Sallee

No 16974, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: A full understanding of how gasoline prices affect consumer behavior frequently requires information on how consumers forecast future gasoline prices. We provide the first evidence on the nature of these forecasts by analyzing two decades of data on gasoline price expectations from the Michigan Survey of Consumers. We find that average consumer beliefs are typically indistinguishable from a no-change forecast, justifying an assumption commonly made in the literature on consumer valuation of energy efficiency. We also provide evidence on circumstances in which consumer forecasts are likely to deviate from no-change and on significant cross-consumer forecast heterogeneity.

JEL-codes: D84 L62 Q40 Q41 (search for similar items in EconPapers)
Date: 2011-04
New Economics Papers: this item is included in nep-ene and nep-mkt
Note: EEE IO PE
References: Add references at CitEc
Citations: View citations in EconPapers (38)

Published as Anderson, Soren T. & Kellogg, Ryan & Sallee, James M., 2013. "What do consumers believe about future gasoline prices?," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 383-403.

Downloads: (external link)
http://www.nber.org/papers/w16974.pdf (application/pdf)

Related works:
Journal Article: What do consumers believe about future gasoline prices? (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:16974

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w16974

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by (wpc@nber.org).

 
Page updated 2024-12-28
Handle: RePEc:nbr:nberwo:16974