ARE US GASOLINE PRICE ADJUSTMENTS ASYMMETRIC?
B. Rao and
Microeconomics from EconWPA
We use the LSE-Hendry general to specific approach to analyse if US gasoline price adjustments are asymmetric with respect to changes in crude oil prices. Furthermore, we modify some weaknesses in the earlier works by Boreinstein, Cameron and Gilbert (1997) and Bachmeier and Griffin (2003) and shows that if the price adjustment equations are properly specified and estimated, alternative specifications and temporal aggregation of data do not affect the results. Monthly US data are used to show that alternative specifications give equally good results and there is no asymmetry in the US gasoline price adjustments.
Keywords: Asymmetric price adjustments; Market power; General to specific approach; Error correction models and Gasoline and crude oil prices (search for similar items in EconPapers)
JEL-codes: P Q Z (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ene and nep-ind
Note: Type of Document - pdf; pages: 9
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Journal Article: Are US gasoline price adjustments asymmetric? (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpmi:0510001
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