This paper re-examines the issue of asymmetries in the transmission of shocks to crude oil prices onto the retail price of gasoline. The distinguishing features are: (i) use of updated and comparable data to carry out an international comparison of gasoline markets; 60 two-stage modeling of the transmission mechanism, in order to assess possible asymmetries at either the refinery stage, the distribution stage or both; (iii) use of asymmetric error correction models to distinguish between short-run and long-run asymmetries; (iv) explicit, possibly asymmetric, role of the exchange rate; (v) bootstrapping of F-tests of asymmetries, in order to overcome the low-power problem of conventional testing procedures. In contrast to several previous findings, the results generally point to widespread differences in both adjustment speeds and short-run responses when input prices rise or fall. (C) 2003 Elsevier Science B.V. All rights reserved.

Galeotti, M., Lanza, A., Manera, M. (2003). Rockets and feathers revisited: An international comparison on European gasoline markets. ENERGY ECONOMICS, 25(2), 175-190 [10.1016/S0140-9883(02)00102-0].

Rockets and feathers revisited: An international comparison on European gasoline markets

MANERA, MATTEO
2003

Abstract

This paper re-examines the issue of asymmetries in the transmission of shocks to crude oil prices onto the retail price of gasoline. The distinguishing features are: (i) use of updated and comparable data to carry out an international comparison of gasoline markets; 60 two-stage modeling of the transmission mechanism, in order to assess possible asymmetries at either the refinery stage, the distribution stage or both; (iii) use of asymmetric error correction models to distinguish between short-run and long-run asymmetries; (iv) explicit, possibly asymmetric, role of the exchange rate; (v) bootstrapping of F-tests of asymmetries, in order to overcome the low-power problem of conventional testing procedures. In contrast to several previous findings, the results generally point to widespread differences in both adjustment speeds and short-run responses when input prices rise or fall. (C) 2003 Elsevier Science B.V. All rights reserved.
Articolo in rivista - Articolo scientifico
gasoline prices; speed of adjustment; asymmetric adjustment; exchange rate
English
2003
25
2
175
190
none
Galeotti, M., Lanza, A., Manera, M. (2003). Rockets and feathers revisited: An international comparison on European gasoline markets. ENERGY ECONOMICS, 25(2), 175-190 [10.1016/S0140-9883(02)00102-0].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/794
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