COVID-19 and Daily Oil Price Pass-Through

Hakan Yilmazkuday

No 2113, Working Papers from Florida International University, Department of Economics

Abstract: This paper investigates the (crude) oil price pass-through into gasoline spot and gasoline retail prices in the U.S. due to the e¤ects of coronavirus disease 2019 (COVID-19). The investigation is achieved by using daily data in a structural vector autoregression framework. The oil price pass-through is measured as the cumulative impulse response of gasoline spot or gasoline retail prices divided by the cumulative impulse response of oil prices, both following a percentage change in total number of the U.S. COVID-19 cases. The results suggest evidence for complete pass-through of oil prices into gasoline spot prices, whereas the corresponding pass-through into gasoline retail prices is about 29 percent in the long run.

Keywords: Pass-Through; Oil Prices; Gasoline Prices; Retail Prices; Spot Prices; Daily Data (search for similar items in EconPapers)
JEL-codes: Q41 Q43 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2021-05
New Economics Papers: this item is included in nep-ene
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Citations: View citations in EconPapers (1)

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https://economics.fiu.edu/research/pdfs/2021_working_papers/211312.pdf First version, 2021 (application/pdf)

Related works:
Journal Article: COVID-19 and Daily Oil Price Pass-Through (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:fiu:wpaper:2113

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