Price pass-through in US gasoline markets

Benjamin F. Blair, Randall C. Campbell and Phillip A. Mixon

Energy Economics, 2017, vol. 65, issue C, 42-49

Abstract: Using an error-correction model in a seemingly unrelated regression framework, we examine regional differences in the price pass-through from crude oil spot prices to retail gasoline pump prices. We show that regional differences do exist both in the short run and long run adjustment processes. Depending on the region, a $1 per barrel change in crude oil prices is correlated with a change in retail gasoline pump prices somewhere between 2.36¢ and 2.58¢. We examine the presence of the rockets and feathers phenomenon using both single period coefficient tests and multiple period impulse response functions.

Keywords: Gasoline; Crude oil; Pass through; Error correction (search for similar items in EconPapers)
JEL-codes: Q4 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:65:y:2017:i:c:p:42-49

DOI: 10.1016/j.eneco.2017.04.011

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