Formative Experiences and the Price of Gasoline

Christopher Severen and Arthur A. van Benthem

American Economic Journal: Applied Economics, 2022, vol. 14, issue 2, 256-84

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 D91 L71 Q35 R41 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (6)

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Related works:
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)
Working Paper: Formative Experiences and the Price of Gasoline (2019)
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DOI: 10.1257/app.20200407

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