Asymmetric exchange rate and oil price pass-through in motor fuel market: A microeconometric approach
Utku Ozmen () and
Fatih Akcelik ()
The Journal of Economic Asymmetries, 2017, vol. 15, issue C, 64-75
We analyze the response of retail motor fuel prices to oil price and exchange rate changes. Using a novel microdata approach considering price spells separately; we find evidence for pass-through asymmetry in Turkish motor fuel market based on the sign, source and size of cost shocks. Exchange rate (oil price) is the main factor fueling asymmetry in case of cost increases (decreases). The smaller the magnitude of positive cost shock the higher the pass-through is. Sign asymmetry is reversed during crisis. Market structure is suggested as the main explanation of the asymmetry, yet there are factors limiting the use of market power.
Keywords: Oil price; Exchange rate; Micro data; Motor fuel; Pass-through asymmetry; Turkey (search for similar items in EconPapers)
JEL-codes: D22 D43 E31 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:joecas:v:15:y:2017:i:c:p:64-75
Access Statistics for this article
The Journal of Economic Asymmetries is currently edited by A.G. Malliaris
More articles in The Journal of Economic Asymmetries from Elsevier
Bibliographic data for series maintained by Haili He ().