Re-examining the asymmetric gasoline pricing mechanism in EU: a note on a panel threshold analysis

Chaoyi Chen, Michael Polemis () and Thanasis Stengos

Applied Economics Letters, 2020, vol. 27, issue 10, 778-783

Abstract: We employ a pooled panel threshold model within an error correction framework to re-investigate the ‘rockets and feathers’ hypothesis. The empirical results confirm the superiority of the threshold model compared to the baseline linear specifications, while attributing the asymmetric gasoline adjustment mechanism to Exchange Rate Pass Through (ERPT).

Date: 2020
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DOI: 10.1080/13504851.2019.1645274

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