Redistributive Effects of Gasoline Prices

Demet Yilmazkuday () and Hakan Yilmazkuday
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Demet Yilmazkuday: Department of Economics, Florida International University

No 1807, Working Papers from Florida International University, Department of Economics

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 istance/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)
JEL-codes: L11 L81 Q41 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2018-10
New Economics Papers: this item is included in nep-com, nep-ene and nep-tre
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https://economics.fiu.edu/research/pdfs/2018_working_papers/1807.pdf First version, 2018 (application/pdf)

Related works:
Journal Article: Redistributive Effects of Gasoline Prices (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:fiu:wpaper:1807

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