Demand for gasoline is more price-inelastic than commonly thought
Tomas Havranek (),
Zuzana Irsova () and
Karel Janda ()
No 120416, CUDARE Working Papers from University of California, Berkeley, Department of Agricultural and Resource Economics
Demand for gasoline is more price-inelastic than commonly thought Abstract: One of the most frequently examined statistical relationships in energy economics has been the price elasticity of gasoline demand. We conduct a quantitative survey of the estimates of elasticity reported for various countries around the world. Our meta- analysis indicates that the literature suffers from publication selection bias: insignificant or positive estimates of the price elasticity are rarely reported, although implausibly large negative estimates are reported regularly. In consequence, the aver- age published estimates of both short- and long-run elasticities are exaggerated twofold. Using mixed effects multilevel meta-regression, we show that after correction for publication bias the average long-run elasticity reaches -0:31 and the average short-run elasticity only -0:09.
Keywords: Political Economy; Resource /Energy Economics and Policy (search for similar items in EconPapers)
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Journal Article: Demand for gasoline is more price-inelastic than commonly thought (2012)
Working Paper: Demand for gasoline is more price-inelastic than commonly thought (2011)
Working Paper: Demand for Gasoline Is More Price-Inelastic than Commonly Thought (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucbecw:120416
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