Asymmetric price adjustment and the effects of structural reforms and low demand in the gasoline market: the case of Greece

Bragoudakis, Zacharias; Sideris, Dimitrios

doi:10.1080/15140326.2021.1922188

Cited by 4 publications

(4 citation statements)

References 28 publications

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“…In contrast, others have identified no such causality patterns across the two markets under consideration (Kilian 2010 ). Finally, during crises, the literature also offers solid support for our findings (Asane-Otoo and Schneider 2015 ; Bragoudakis and Sideris 2021 ; Ogbuabor et al 2019 ). This literature evidence provides solid support for our empirical findings commensurate with the goal and the novelty of this work.…”

Section: Resultssupporting

confidence: 83%

Do gasoline and diesel prices co-move? Evidence from the time–frequency domain

Mutaşcu

Albulescu

Apergis

et al. 2022

Environ Sci Pollut Res

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This study investigates the co-movements of gasoline and diesel prices in three European countries (i.e. Germany, France, and Italy) with different fuel tax systems in place. The methodology follows a time–frequency approach, allowing us to analyse the co-movements at different frequencies and moments in time. As a novelty, we study the impact of fuel tax systems and international oil price dynamics on gasoline and diesel price co-movement. Using weekly data spanning the period from January 2005 to June 2021, the wavelet coherence analysis shows co-movements between gasoline and diesel at all frequencies, as well as during specific periods, but stronger in the long run. This evidence is recorded across all three countries, regardless of their tax systems. However, in decoupling the effect of international oil prices, the partial wavelet coherence analysis shows co-movements emerging also in the short run, with them being stronger around the global financial crisis (2008–2009). Although gasoline taxes are generally higher than diesel taxes, the analysis highlights that fuel tax systems do not influence the co-movements of fuel prices. Thus, shedding new light on the co-movement between commodity prices is fundamental, particularly in light of the current international geopolitical scene.

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Section: Resultssupporting

confidence: 83%

Do gasoline and diesel prices co-move? Evidence from the time–frequency domain

Mutaşcu

Albulescu

Apergis

et al. 2022

Environ Sci Pollut Res

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“…The authors did not find strong enough evidence of short- and long-term asymmetric effects of crude oil price shocks towards retail price for any of the four countries analyzed: contemporaneous and late effects are statistically similar in both. For the Greek economy, Bragoudakis and Sideris (2021) found only symmetrical effects with the TAR-ECM model.…”

Section: Resultsmentioning

confidence: 88%

“…Bragoudakis and Sideris (2021), in a study on asymmetry in Greece, using the TAR-ECM method, in the post-2010 period, observed evidence of a symmetrical behavior in the recent period.…”

Section: Literature Reviewmentioning

confidence: 99%

Asymmetry in the prices of crude oil and diesel and gasoline prices in Brazil

Barbosa,

Sousa,

Besarria

et al. 2023

JES

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PurposeThe aim of this study was to determine if there are asymmetries in the pass-through of West Texas Intermediate (WTI) crude oil prices to its derivatives (diesel and gasoline) in the Brazilian market.Design/methodology/approachInitially, the future WTI oil price series was analyzed using the self-exciting threshold autoregressive (SETAR) and logistic smooth transition autoregressive (LSTAR) non-linear models. Subsequently, the threshold autoregressive error-correction model (TAR-ECM) and Markov-switching model were used.FindingsThe findings indicated high prices throughout 2008 due to the subprime crisis. The findings indicated high prices throughout 2008 due to the subprime crisis. The results indicated that there is long-term pass-through of oil prices in both methods, suggesting an equilibrium adjustment in the prices of diesel and gasoline in the analyzed period. Regarding the short term, the variations in contemporary crude oil prices have positive effects on the variations in fuel prices. Lastly, this behavior can partly be explained by the internal price management structure adopted during almost all of the analyzed period.Originality/valueThis paper contributes to the literature at some points. The first contribution is the modeling of the oil price series through non-linear models, further enriching the literature on the recent behavior of this time series. The second is the simultaneous use of the TAR-ECM and Markov-switching model to capture possible short- and long-term asymmetries in the pass-through of prices, as few studies have applied these methods to the future price of oil. The third and main contribution is the investigation of whether there are asymmetries in the transfer of oil prices to the price of derivatives in Brazil. So far, no work has investigated this issue, which is very relevant to the country.

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“…In addition, his findings indicate that oligopolistic coordination is a more appropriate explanation of the observed asymmetry than theories related to the cost of search to consumers. In addition, studies of asymmetry in the gasoline market have been conducted in Italy [12], Greece [13], China [14], United States [15], Brazil [16], Russia [17], Australia [18], South Korea [19][20][21], Europe [22], and many countries [23]. The asymmetry study was applied not only to the gasoline market, but also to the electricity market [24] and the aviation market [25].…”

Section: Introductionmentioning

confidence: 99%

Rockets and Feathers in the Gasoline Market: Evidence from South Korea

Cha

Lee

2023

Sustainability

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This study analyzes how changes in oil prices are transmitted to gasoline prices in Korea. We attempt to identify the main causes of the observed price asymmetry and offer plausible theories by investigating price transmission at different levels of the distribution process. Retail prices react faster to increases in the Singapore spot market prices than decreases. We also find asymmetry in the price transmission from spot gasoline to wholesale gasoline, but in the opposite direction. Additionally, there is little evidence of asymmetry in the pass-through from wholesale prices to retail prices. Therefore, the observed asymmetry of retail prices is due mainly to the transmission of prices from spot gasoline to retail gasoline, and theories related to the cost of search for consumers seem to be the most relevant in explaining the asymmetry. Finally, the results indicate that the asymmetric pricing results in a substantial loss to consumers.

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Asymmetric price adjustment and the effects of structural reforms and low demand in the gasoline market: the case of Greece

Cited by 4 publications

References 28 publications

Do gasoline and diesel prices co-move? Evidence from the time–frequency domain

Do gasoline and diesel prices co-move? Evidence from the time–frequency domain

Asymmetry in the prices of crude oil and diesel and gasoline prices in Brazil

Rockets and Feathers in the Gasoline Market: Evidence from South Korea

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