The Systemic, Long-run Relation among Gasoline Demand, Gasoline Price, Income, and Vehicle Ownership in OECD Countries: Evidence from Panel Cointegration and Causality Modeling

Brantley Liddle

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyzes gasoline consumption per capita, income (GDP per capita), gasoline price, and car ownership per capita for a panel of OECD countries by employing panel unit root and cointegration testing, panel Dynamic and Fully Modified OLS estimations, and panel Granger-causality tests. The four variables are determined to be panel I(1) and cointegrated. Estimated long-run and short-run income elasticities are smaller than what typically had been found previously. Lastly, gasoline consumption is Granger-caused by gasoline price, but not by car ownership or income; whereas, car ownership is Granger-caused by income and at the margin by gasoline consumption, but not by gasoline price.

Keywords: gasoline demand elasticities; OECD countries; panel unit roots; panel cointegration; panel Dynamic OLS and Fully Modified OLS estimation; panel Granger-causality testing (search for similar items in EconPapers)
JEL-codes: Q41 R41 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/52081/1/MPRA_paper_52081.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:52081

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().