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Redistributive Effects of Gasoline Prices

Demet Yilmazkuday () and Hakan Yilmazkuday
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Demet Yilmazkuday: Florida International University

Networks and Spatial Economics, 2019, vol. 19, issue 1, No 5, 109-124

Abstract: Abstract Consumers face significantly different gasoline prices across gas stations. Using gasoline price data obtained from 98,753 gas stations within the U.S., it is shown that such differences can be explained by a model utilizing the gasoline demand of consumers depending on their income and commuting distance/time, where the pricing strategies of both gas stations and refiners are taken into account. The corresponding welfare analysis shows that there are significant redistributive effects of gasoline price changes among consumers, where the welfare costs of an increase in gasoline prices are found to be higher for lower income consumers.

Keywords: Gasoline prices; Gas-station level analysis; United states (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Working Paper: Redistributive Effects of Gasoline Prices (2018) Downloads
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DOI: 10.1007/s11067-018-9435-9

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