The determinants of retail petrol prices in Greece

Angelopoulou, Eleni; Gibson, Heather D.

doi:10.1016/j.econmod.2010.07.024

Cited by 19 publications

(14 citation statements)

References 9 publications

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“…Prices tend to adjust faster when they are below their equilibrium value than when they are above it. The results are in line with most of the existing studies for Greece, which use data for this particular period-see Meyler, (2009), Angelopoulou andGibson (2010), Polemis (2012) and Polemis and Fotis (2013).…”

Section: Discussionsupporting

confidence: 90%

“…He provides evidence of asymmetry in the retail gasoline price adjustments in both the long and the short term, evidence which implies poor competition in the oil market in Greece. In a different context, in a paper analysing the determinants of retail gasoline prices in Greece, Angelopoulou and Gibson (2010) examine pricing in the domestic fuel market, using weekly observations for the period November 2004-February 2009. They show that prices adjust symmetrically to world oil prices in the short run, but asymmetrically to tax changes and/or across various regions in Greece.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Although there are no formal barriers to market entry, constraints existed due to regulations on oil stocks. 5 Also, pricing differs across regions: it is not clear how companies set their prices across the different regions in Greece (see also Angelopoulou and Gibson, 2010). In addition, the transportation market (fuel is transported by public-and private-use tanker trucks) in which transport costs are determined, is not perfectly competitive.…”

Section: The Greek Marketmentioning

confidence: 99%

“…More specifically,Meyler (2009),Cleridis (2010),Angelopoulou & Gibson (2010) andPolemis (2012) andPolemis and Fotis (2013) analyse the periods1994-2008, 2000-2010, 2004-2009, 1998-2006 and 2000-2011, respectively. 4 ELPE is the leading industrial and commercial group in the energy sector.…”

mentioning

confidence: 99%

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Asymmetric Price Adjustment and the Effects of Structural Reforms in a Low Income Environment: The Case of the Gasoline Market in Greece

Bragoudakis

Sideris²

2019

SSRN Journal

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The pricing mechanism in the gasoline market has often been the subject of public debate in Greece during the crisis years. Inefficient pricing could imply oligopolistic practices in the market and losses to consumers' welfare in a period characterised by a dramatic fall in consumers' income and standard of living. A way to test whether pricing is efficient in the market is by testing for asymmetries in the adjustment of domestic gasoline prices to world oil price changes. The present paper has two aims: (a) The first is to investigate the existence of asymmetric adjustment of gasoline prices to oil price variations in the Greek market, thus contributing to the relevant literature. (b) The second is to examine whether the structural reforms that took place in the gasoline market and the large fall in income, which characterise consumers' behaviour in the recent period, had any impact on the pricing dynamics in the market. To this end, the analysis: (i) applies the TAR-ECM threshold cointegration technique, which assumes asymmetric adjustment towards the long-run equilibrium; (ii) makes use of observations at the highest frequency available; and (iii) uses the most recent data. The results provide evidence in favour of symmetric behaviour just for the crisis period. This may reflect competitive behaviour by suppliers who had to interact in a low demand environment and under a new institutional framework following the reforms, along with a change in consumers' search behaviour who had to deal with a severe fall in their income.

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Section: Discussionsupporting

confidence: 90%

Section: Literature Reviewmentioning

confidence: 99%

Section: The Greek Marketmentioning

confidence: 99%

mentioning

confidence: 99%

See 2 more Smart Citations

Asymmetric Price Adjustment and the Effects of Structural Reforms in a Low Income Environment: The Case of the Gasoline Market in Greece

Bragoudakis

Sideris²

2019

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…He provides evidence of asymmetry in the retail gasoline price adjustments in both the long and the short term, evidence implying poor competition in the oil market in Greece. In a different context, in a paper analysing the determinants of retail gasoline prices in Greece, Angelopoulou and Gibson (2010) examine pricing in the domestic fuel market, using weekly observations for the period November 2004-February 2009. They show that prices adjust symmetrically to world oil prices in the short run, but asymmetrically to tax changes and/or across various regions in Greece.…”

Section: Introductionmentioning

confidence: 99%

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

Bragoudakis

Sideris

2021

Journal of Applied Economics

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The pricing mechanism in the gasoline market has often been the subject of public debate in Greece during the crisis years. Inefficient pricing could imply oligopolistic practices and losses to consumers' welfare. A way to test for inefficient pricing, is by testing for asymmetries in the adjustment of domestic gasoline prices to world oil price changes. The present paper tests for asymmetric adjustment of gasoline prices to oil price variations in the Greek market and examines whether the structural reforms that took place in the post-2010 period had any impact on the functioning of the market. The analysis applies a consistent threshold cointegration technique and makes use of the most recent observations at the lowest frequency available. The results provide evidence in favour of symmetric behaviour, just for the recent period. This may reflect competitive behaviour by suppliers who had to interact in a new institutional framework following the reforms.

show abstract

Modelling the terminal gate prices of unleaded petrol in Australia

Valadkhani

2013

Economic Modelling

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The determinants of retail petrol prices in Greece

Cited by 19 publications

References 9 publications

Asymmetric Price Adjustment and the Effects of Structural Reforms in a Low Income Environment: The Case of the Gasoline Market in Greece

Asymmetric Price Adjustment and the Effects of Structural Reforms in a Low Income Environment: The Case of the Gasoline Market in Greece

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

Modelling the terminal gate prices of unleaded petrol in Australia

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