Re-examining the Asymmetric Gasoline Pricing Mechanism in EU: A Panel Threshold Analysis
Chaoyi Chen,
Michael Polemis () and
Thanasis Stengos
MPRA Paper from University Library of Munich, Germany
Abstract:
We employ a pooled panel threshold model along the lines of Seo and Shin (2016) within an error correction framework to re-investigate the “rockets and feathers” hypothesis. The empirical results confirm the superiority of the threshold model compared to the baseline linear specifications, while attributing the asymmetric gasoline adjustment mechanism to Exchange Rate Pass Through (ERPT).
Keywords: Gasoline asymmetry; Threshold; ERPT; Error Correction Model; EU (search for similar items in EconPapers)
JEL-codes: C24 L16 (search for similar items in EconPapers)
Date: 2018-08-29
New Economics Papers: this item is included in nep-com, nep-ene, nep-reg and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:89575
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