Retail price asymmetries in local gasoline markets

Duffy-Deno, Kevin T.

doi:10.1016/0140-9883(95)00051-8

Cited by 82 publications

(30 citation statements)

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“…More studies about the US oil price asymmetry have been made. Some of them didn't find asymmetry in US market (Karrenbrock, 1991;Shin,1994;Balke et al, 1998;Bachmeier and Griffin , 2003 ), while the others find that (Duffy-Deno, 1996;Borenstein et al,1997;Johnson,2002;Kaufmann and Laskowski, 2005 ). There are also studies about some other countries such as Canada, Philippine, China and so on.…”

Section: Introductionmentioning

confidence: 99%

Relation between China’s gasoline prices and international crude oil prices

Yuan

Yang

Liu

et al. 2016

Energy Sources, Part B: Economics, Planning, and Policy

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China's gasoline prices are still regulated by government although China's refined oil pricing mechanism has been reformed for many times. In this paper, proximity and similarity between China's gasoline prices and Brent crude oil prices are calculated in the different stages with China's refined oil pricing mechanism reforming, by using daily data and grey relational analysis method. The results show that there have undergone great changes of the similarity and proximity between China's gasoline prices and international crude oil prices.

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Section: Introductionmentioning

confidence: 99%

Relation between China’s gasoline prices and international crude oil prices

Yuan

Yang

Liu

et al. 2016

Energy Sources, Part B: Economics, Planning, and Policy

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“…Again the U.S. attracts the interest of Duffy-Deno (1996), and in particular the downstream relationship between wholesale and net-of-tax-retail gasoline prices The data this time are weekly for 1989-1993 and the econometric model shows strong persistent asymmetries, with a complete adjustment in the case of price rises and incomplete for price falls. Borenstein et al (1997) study the U.S. gasoline market using weekly data for 1986-1992.…”

Section: Overview Of the Literaturementioning

confidence: 99%

Asymmetric Error Correction Models for the Oil-Gasoline Price Relationship

Manera

Grasso

2005

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asymmetric Error Correction Models for the Oil-Gasoline Price Relationship SummaryThe existing literature on price asymmetries does not systematically investigate the sensitivity of the empirical results to the choice of a particular econometric specification. This paper fills this gap by providing a detailed comparison of the three most popular models designed to describe asymmetric price behaviour, namely asymmetric ECM, autoregressive threshold ECM and ECM with threshold cointegration. Each model is estimated on a common monthly dataset for the gasoline markets of France, Germany, Italy, Spain and UK over the period [1985][1986][1987][1988][1989][1990][1991][1992][1993][1994][1995][1996][1997][1998][1999][2000][2001][2002][2003]. All models are able to capture the temporal delay in the reaction of retail prices to changes in spot gasoline and crude oil prices, as well as some evidence of asymmetric behaviour. However, the type of market and the number of countries which are characterized by asymmetric oil-gasoline price relations vary across models. The asymmetric ECM yields some evidence of asymmetry for all countries, mainly at the distribution stage. The threshold ECM strongly rejects the null hypothesis of symmetric price behaviour, particularly in the case of France and Germany. Finally, the ECM with threshold cointegration finds long-run asymmetry for each country in the reaction of retail prices to oil price changes.

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“…10 Studies that examine rigidities in gasoline markets begin with Bacon (1991) and Karrenbrock (1991) and continue to include Duffy-Deno (1996), Borenstein, Cameron, and Gilbert (1997), Borenstein and Shepard (2002), Eckert (2002), Bachmeier and Griffin (2003), Noel (2007), Balmaceda and Soruco (2008), Deltas (2008), Hosken, McMillan, and Taylor (2008), and Verlinda (2008), amongst others -Geweke (2004 and Eckert (2011) provide thorough reviews of retail gasoline studies. 11 We collected price observations for 10 products in order to protect the researcher's anonymity and in order to keep the data collection manageable.…”

Section: The Theoretical Modelmentioning

confidence: 99%