Retail Prices of Gasoline and Asymmetric Adjustment to Wholesale Prices in Colombia

Jaime Carabalí, Luis Meneses, Alex Perez and Manuel Rodriguez Ortiz
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Jaime Carabalí: Banco W, Colombia
Luis Meneses: Universidad Cooperativa de Colombia, Colombia

Journal of Economic Development, 2022, vol. 47, issue 3, 73-105

Abstract: This study examines the pass-through between retail and wholesale prices of gasoline in Colombia. Data from 2017 to 2019 were available on prices and characteristics of gasoline sold by service stations in the main cities of Colombia. Information on the location of the stations is also available, which is used to georeference the stations and obtain the potential number of competitors for a station. The study results show an asymmetric pass-through behavior between retail and wholesale prices. Furthermore, the potential number of competitors of the stations has a direct effect on the retail prices and an indirect effect because it alters the stations’ pass-through.

Keywords: Pass-Through; Asymmetric Price Adjustment; Gasoline Retail Markets (search for similar items in EconPapers)
JEL-codes: D43 D82 D83 Q40 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jecdev:0011

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