Gasoline Prices, Transport Costs, and the U.S. Business Cycles

Hakan Yilmazkuday

No 1409, Working Papers from Florida International University, Department of Economics

Abstract: The e¡èects of gasoline prices on the U.S. business cycles are investigated. In order to distinguish between gasoline supply and gasoline demand shocks, the price of gasoline is endogenously determined through a transportation sector that uses gasoline as an input of production. The model is estimated for the U.S. economy using five macroeconomic time series, including data on transport costs and gasoline prices. The results show that although standard shocks in the literature (e.g., technology shocks, monetary policy shocks) have significant effects on the U.S. business cycles in the long run, gasoline supply and demand shocks play an important role in the short run.

Keywords: Business Cycles; Transport Costs; Gasoline Prices (search for similar items in EconPapers)
JEL-codes: E32 E52 F41 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2014-06
New Economics Papers: this item is included in nep-dge, nep-ene, nep-mac and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://economics.fiu.edu/research/pdfs/2014_working_papers/1409.pdf First version, 2014 (application/pdf)

Related works:
Journal Article: Gasoline prices, transport costs, and the U.S. business cycles (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:fiu:wpaper:1409

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