✦ LIBER ✦
The asymmetry of gasoline prices: fresh evidence from an error correction model for U.K. and U.S.A.
✍ Scribed by M. Nagy Eltony
- Publisher
- John Wiley and Sons
- Year
- 1998
- Tongue
- English
- Weight
- 169 KB
- Volume
- 22
- Category
- Article
- ISSN
- 0363-907X
No coin nor oath required. For personal study only.
✦ Synopsis
An error correction model was fitted to monthly data on net retail gasoline prices for the U.K. and the U.S.A. over the period January 1980-June 1996 in order to examine the short-run response of gasoline prices to changes in crude oil costs and exchange rate. The hypothesis of a symmetric response by gasoline station owners to crude oil price rises and falls was rejected by the data for both the U.K. and the U.S.A. A similar hypothesis in regard to the exchange rate was also rejected by the data.