Formative Experiences and the Price of Gasoline

Christopher Severen and Arthur van Benthem

No 26091, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Formative experiences shape behavior for decades. We document a striking feature about those who came of driving age during the oil crises of the 1970s: they drive less in the year 2000. The effect is not specific to these cohorts; price variation over time and across states indicates that gasoline price changes between ages 15–18 generally shift later-life travel behavior. Effects are not explained by recessions, income, or costly skill acquisition and are inconsistent with recency bias, mental plasticity and standard habit-formation models. Instead, they likely reflect formation of preferences for driving or persistent changes in its perceived cost.

JEL-codes: D12 D90 L91 Q41 R41 (search for similar items in EconPapers)
Date: 2019-07
Note: EEE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published as Christopher Severen & Arthur A. Van Benthem, 2022. "Formative Experiences and the Price of Gasoline," American Economic Journal: Applied Economics, vol 14(2), pages 256-284.

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Related works:
Journal Article: Formative Experiences and the Price of Gasoline (2022)
Working Paper: Formative Experiences and the Price of Gasoline (2019)
Working Paper: Formative Experiences and the Price of Gasoline (2019)
Working Paper: Formative Experiences and the Price of Gasoline (2019)
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