foreign exchange shocks and gasoline consumption abstract in an open economy the foreign exchange rate fer influences incentives for the cross border shopping of gasoline as well as the opportunity cost of using vehicles and the relative attractiveness of home versus foreign travel using monthly regional level data of gasoline consumption in iran we estimate the impact of exchange rate shocks both in level and volatility on gasoline demand we find that positive exchange rate shocks have a negative impact on total gasoline consumption as well as on vehicle users demand in both short run and long run furthermore we find that in the periods that fer is less volatile the responsiveness of gasoline demand to a change in fer is more pronounced

gasoline demand in europe new insights abstract this study utilizes a panel data set from 14 european countries over the period 1990 2004 to estimate a dynamic model specification for gasoline demand previous studies estimating gasoline consumption per total passenger cars ignore the recent increase in the number of diesel cars in most european countries leading to biased elasticity estimates we apply several common dynamic panel estimators to our small sample results show that specifications neglecting the share of diesel cars overestimate short run income price and car ownership elasticities it appears that the results of standard pooled estimators are more reliable than common iv gmm estimators applied to our small data set

determinants of import demand for non renewable energy petroleum products empirical evidence from nigeria abstract this study estimated determinants of import demand for refined petroleum products in nigeria for the period 1984 2013 it employed the autoregressive distributed lag ardl bounds test cointegration method and analysed both long run and short run determinants of import demand for total and specific petroleum products in the long run aggregate and sectoral incomes are significant determinants of import of refined kerosene further real effective exchange rate reer aggregate income gdp manufacturing sector s income domestic energy production dep and population growth rate pgr are drivers of import of refined motor spirit moreover reer dep and manufacturing sector s income are propellers of import of refined distillate fuel also reer and total output of petroleum products are major drivers of total import of refined petroleum products short run results show that previous period gdp pgr and manufacturing and service sectors incomes are determinants of import demand for refined kerosene moreover reer gdp previous pgr and manufacturing sector s income exert significant effects on the import of refined motor spirit further significant effects of reer dep previous pgr domestic output of the product and manufacturing and service sectors incomes on the import demand for distillate fuel were found policy implications of the foregoing are articulated in the paper

analyzing light fuel demand elasticities in brazil using cointegration techniques abstract this study is intended to assess the sensitivity of demand for light fuels in brazil to changes in prices and income considering the unique characteristics of the brazilian fleet the lack of convergence across studies available for the domestic market and its importance in discussions on climate change and national security among others for this purpose the short and long term price and income elasticities of light fuel demand were estimated using cointegration techniques based on an empirical model that incorporates the unique features of the internal market despite the characteristics of the brazilian fleet the results showed that the elasticities found for the national market are similar to those seen in other countries the conceptual framework and empirical analysis that were used also allowed for a better understanding of the differences between the results of studies on demand for gasoline ethanol or natural gas in brazil and those found in the international literature providing key players in the sector with crucial information for designing public policies and business strategies

demand for gasoline in kuwait an empirical analysis using cointegration techniques abstract this paper estimates the demand for gasoline in kuwait for the period 1970 1989 using a cointegration and error correction model ecm it is found that gasoline demand is inelastic with respect to price in the short and long run and while it is elastic in the long run gasoline demand is inelastic with respect to income in the short run this suggests that gasoline demand response to income changes is higher in the long run than in the short run furthermore gasoline consumption adjusts towards its long run level with about 52 of the adjustment occurring in the first year

does competition reduce price dispersion new evidence from the airline industry we analyze the effects of competition on price dispersion in the airline industry using panel data from 1993 q1 through 2006 q3 competition has a negative effect on price dispersion in line with the textbook treatment of price discrimination this effect is pronounced for routes with consumers characterized by relatively heterogeneous elasticities of demand on routes with a homogeneous customer base the effects of competition on price dispersion are smaller our results contrast with those of borenstein and rose who found that price dispersion increases with competition we reconcile the different results by showing that the cross sectional estimator suffers from omitted variable bias

wages and employment under trade unionism microeconomic models and macroeconomic applications the first part of this paper is a critical survey of microeconomic research into behavioural models of trade unionism although certain formulations of union objectives and models of wage and employment determination in unionized markets have found favor with economists unfortunately only a little is known about their empirical relevance the second part of this paper deals with the daunting problems of applying these models at the macroeconomic level one such model is estimated with data from sweden s mining and manufacturing sector from 1968 to 1982

information sharing information free riding and capital structure in oligopolies we study the effect of capital structure decisions on the incentives for firms in a duopoly to share information through a trade association focusing on the case of cournot competition with demand uncertainty we find that the standard result for all equity firms that information will not be shared may be reversed when one firm has better access to information than the other leverage may be a way for the latter firm to free ride on the former firm s information with ex ante symmetric firms a trade association will be formed even if information sharing does not occur

elasticities of demand for gasoline in canada and the united states abstract fluctuations in the world price of oil the concern with greenhouse gas emissions and the efforts to revive the 1997 kyoto protocol have resulted in renewed interest in the estimation of elasticities of demand for gasoline in this paper a complete system of demand equations is estimated including an equation for the demand for gasoline canadian family expenditure famex and united states consumer expenditure cex survey data are used household level data permits estimation of elasticities for various household groups also differences in demand responsiveness to own price and income changes are estimated for different regions in canada and the united states demand is found to be own price and income inelastic on the whole as reported in earlier studies there is also variation in these elasticities across regions of canada and the united states however larger differences are observed with respect to household size and housing tenure than to region of residence

an integration of trade union models in a sequential bargaining framework this paper aims to embed two popular models of trade union behavior the monopoly model and the efficient bargaining model in a more general framework it does this by analyzing sequential bargaining models where wages are determined before employment and the power of the union in the two stages of the bargain differs as well as finding that the monopoly and efficient bargain models are special cases of this model a new class of models is also discovered this framework is used to analyze the relationship between union pow er and efficiency the empirical analysis of trade unions and the effects of trade union legislation copyright 1987 by royal economic society

fuel tourism in border regions the case of switzerland this paper explores the issue of fuel tourism in switzerland for the period 1985 1997 a panel data model for the border regions of switzerland italy france and germany is estimated the results show a significant impact of the gasoline price differential on demand suggesting that a decrease of 10 in the swiss gasoline price leads to an increase in demand in the border areas of nearly 17 5 it is shown that fuel tourism accounted for about 9 of overall gasoline sales in the three regions during the period 1985 1997 and that the recently proposed swiss co2 tax might given current conditions eliminate net fuel tourism

can immigrant employment alleviate the demographic burden the role of union centralization this paper investigates the effect of labor immigration on public pensions when wage setting by a centralized trade union leads to unemployment it is shown that immigration improves the financial soundness of pay as you go pensions if and only if it diminishes total employment this occurs if the absolute value of the elasticity of labor demand exceeds the unemployment rate

an analysis of gasoline demand elasticities at the national and local levels in mexico abstract the majority of evidence on gasoline demand elasticities is derived from models based on national data since the largest growth in population is now taking place in cities in the developing world it is important that we understand whether this national evidence is applicable to demand conditions at the local level the aim of this paper is to estimate and compare gasoline per vehicle demand elasticities at the national and local levels in mexico national elasticities with respect to price income vehicle stock and metro fares are estimated using both a time series cointegration model and a panel gmm model for mexican states estimates for mexico city are derived by modifying national estimates according to mode shares as suggested by graham and glaister 2006 and by estimating a panel within groups model with data aggregated by borough although all models agree on the sign of the elasticities the magnitudes differ greatly elasticities change over time and differ between the national and local levels with smaller price responses in mexico city in general price elasticities are smaller than those reported in the gasoline demand surveys a pattern previously found in developing countries the fact that income and vehicle stock elasticities increase over time may suggest that vehicles are being used more intensively in recent years and that mexico city residents are purchasing larger vehicles elasticities with respect to metro fares are negligible which suggests little substitution between modes finally the fact that fuel efficiency elasticities are smaller than vehicle stock elasticities suggests that vehicle stock size rather than its composition has a larger impact on gasoline consumption in mexico city

energy taxes as a signaling device an empirical analysis of consumer preferences this paper presents an econometric study dealing with household demand in sweden the main objective is to empirically examine the differences in consumer reaction to the introduction of or the change in environmental taxes main focus is on environmental taxes as a signaling device the hypothesis is that the introduction of an environmental tax provides new information about the properties of the directly taxed goods this in turn may affect consumer preferences for these goods hence altering the consumption choice the result from the econometric analysis shows that all goods have negative own price elasticities and positive income elasticities concerning the signalling effect of environmental taxes the results are somewhat ambiguous the tax elasticity for energy goods used for heating seems to be significantly higher than the traditional price elasticity whereas the opposite seems to be the case for energy goods used for transportation

an empirical analysis of gasoline demand in denmark using cointegration techniques abstract danish time series data covering the period 1948 1991 are used in order to estimate short run and long run elasticities in gasoline demand a cointegration test for a stable long run relationship between the variables in the model proves to be positive showing a smaller value of the long run price elasticity than often quoted in empirical studies of gasoline demand finally an error correction model is estimated

gasoline consumption and the stock of motor vehicles an empirical analysis for the swiss economy abstract the demand for gasoline and the stock of cars is empirically explained for the swiss economy by applying statistical methods from modern time series analysis to annual data over the period 1962 1985 the short run price and income elasticities of gasoline consumption are 0 3 to 0 45 and 0 7 the price elasticity became substantially higher after the first opec shock in 1973 pollution control measures introduced in 1982 negatively affected the stock of cars longer run effects operating over changes in the size of the stock and the fuel efficiency of cars are stretched out over several years as shown by a variety of simulation experiments

cointegration and the demand for gasoline since the early 1970s there has been a worldwide upsurge in the price of energy and in particular of gasoline therefore demand functions for energy and its components like gasoline have received much attention however since confidence in the estimated demand functions is important for use in policy and forecasting following amarawickrama h a hunt l c 2008 electricity demand for sri lanka a time series analysis energy economics 33 724 739 this paper estimates the demand for gasoline is estimated with five alternative time series techniques with data from fiji estimates with these alternative techniques are very close and thus increase our confidence in them we found that gasoline demand is both price and income inelastic

is the price effect on fuel consumption symmetric some evidence from an empirical study abstract we generally consider that the price elasticity of the energy demand is quite small but it appears that strong increases in gasoline price lead to modifications in consumer behaviors the high volatility of petroleum prices and the strong increases since the beginning of 2000 justify an analysis of price effects on gasoline consumption we estimate the effects of price variations on gasoline consumption in the united states and india we use a co integration modelling to test for long run relationship between gasoline consumption income price and vehicle ownership in the two countries we use an error correction model to test for short run prices effects and more precisely for asymmetric effects on demand of increases and decreases in gasoline prices the main conclusions are the following concerning the united states the long term price elasticity is relatively high for an industrialised country because gasoline taxes are low but we show that households are more sensitive to a price increase than a price decrease about india price elasticity in the long run is quite high but is quite small in the short run it is not surprising for an emergent country it seems that there is no asymmetric effect of price variations on gasoline consumption

empirical assessment of the determinants of road energy demand in greece this paper attempts to cast light on the determinants of road energy demand in greece for this purpose we used cointegration techniques and vector autoregression var analysis in order to capture short run and long run dynamics for gasoline and diesel demand respectively from the empirical analysis that covers the period 1978 2003 we find that in the long run gasoline energy demand appears to be price and income inelastic while diesel demand appears to be price inelastic and income elastic we also found that the absence of close substitutes in the road sector denotes the low level of energy switching in greece

quantifying consumer perception of a financially distressed company to measure how consumers respond to negative information about the financial health of a durable goods producer i use the prices at which vehicles sell in secondary markets to quantify consumer perception of the chrysler corporation during the period surrounding the chrysler loan guarantee act of 1979 i focus on chrysler s july 31 1979 announcement of financial distress and request for assistance from the u s government the trend in the prices of used chrysler vehicles relative to those of its american competitors provides strong support for the claim that consumers reduce their willingness to pay for the goods of a financially distressed company

the demand for gasoline in south africa an empirical analysis using co integration techniques abstract using the recently developed autoregressive distributed lag ardl bound testing approach to co integration suggested by pesaran et al pesaran m h shin y smith r j bounds testing approaches to the analysis of level relationships journal of applied econometrics 2001 16 3 289 326 we empirically analyzed the long run relationship among the variables in the aggregate gasoline demand function over the period 1978 2005 our study confirms the existence of a co integrating relationship the estimated price and income elasticities of 0 47 and 0 36 imply that gasoline demand in south africa is price and income inelastic

elasticities of gasoline demand in switzerland abstract using cointegration techniques we investigate the determinants of gasoline demand in switzerland over the period 1970 2008 we obtain a very weak price elasticity of 0 09 in the short run and 0 34 in the long run for fuel demand i e gasoline plus diesel the corresponding price elasticities are 0 08 and 0 27 our rich dataset allows working with quarterly data and with more explicative variables than usual in this literature in addition to the traditional price and income variables we account for variables like vehicle stocks fuel prices in neighbouring countries oil shocks and fuel taxes all of these additional variables are found to be significant determinants of demand

short run long run and cross elasticities of gasoline demand in brazil gasoline is one of the most important of the oil derived products its importance is closely related to its participation in the value of imports of many countries and in a number of cases it is one of the determinants of their balance of payment deficit fiscal deficit and economic growth as opposed to most nations brazil has had a gasoline substitute since 1985 alcohol many studies have tried to estimate the income and price elasticities of the demand for gasoline in several countries this paper extends previous studies by estimating the cross price elasticity between gasoline and alcohol our findings indicate that alcohol is an imperfect substitute for gasoline even in the long run as a consequence the need for a new fuel substitution must be initiated long before petroleum reserves vanish

rational habits in gasoline demand abstract the dynamics of demand for energy goods such as gasoline are complicated by investment decisions and behavioral habits both types of complication can be captured by a habits model in which past consumption enters into an agent s current utility function if the agent is forward looking or rational then habits imply his consumption of the habit forming good will be sensitive to his expectation of future market conditions in particular future prices this sensitivity implies in turn that traditional measures of price elasticity will underproject consumers responsiveness to policy interventions this paper examines the implications of rational habits on gasoline demand using a simple model encompassing myopic and rational habits i demonstrate that an agent with rational habits will respond to anticipated future price changes and react more strongly to permanent than to temporary price changes with this distinction increasing in the strength of the habit i then estimate several habits models using panel data on u s states for the years 1989 through 2008 my preferred specification yields evidence of rational habits and moreover i find consumers to be twice as responsive to tax driven price changes as to market driven price changes taxes and other policies that operate through the gasoline price are a more powerful policy instrument than traditional price elasticity would lead us to believe

analysing gasoline demand elasticities a survey this paper is a survey of studies on gasoline demand although there are very many dxerent studies in this eld which sometimes appear to arrive at contradictory results we find that with proper stratification of studies by model and data type much of the contict turns to consensus in this survey we classtfy studies by data type and by ten d erent categories of model and with the exception of estimates on seasonal data which tend to be unstable and of certain inappropriate model formulations we find a fair degree of agreement concerning average short run and even long run income and price elasticities

household gasoline demand in the united states supported by the mit center for energy and environmental policy research the u s dept of energy and the national science foundation

revealed and stated preferences for co2 emissions reduction the missing link abstract in this paper we combine data collected from two strands of literature dealing with revealed preferences expressed by conventional vehicle drivers for fuel price variation and stated preferences expressed by consumers for alternative fuel vehicles we employ a meta analysis approach drawing data on 30 primary studies reflecting two important policy interventions which are fuel price taxation and subsidies for alternative fuel vehicles this is a new contribution in environmental and energy economics in that we rescale all primary information into a unique index which captures consumers economic attitude towards carbon dioxide co2 emission reduction in monetary terms focusing on the transport sector we compute the implicit price for the avoidance of a kilogram of co2 emissions named pco2 explaining the existing heterogeneity from several points of view the results of the meta analysis show that contextual and individual characteristics influence the implicit price for co2 emissions avoidance this implicit price is on average positive in the case of revealed preferences studies whereas it is negative in the stated preferences studies although there are some important geographical differences our results show that fuel taxes could be an important additional instrument for environmental policy

interactions in swiss households energy demand a holistic approach abstract this article analyzes the interactions and possible trade offs between direct energy consumption and embodied energy requirement of households in switzerland in order to assess the net impacts of standard energy policies focusing exclusively on direct energy use direct and embodied energy demand of swiss households are estimated by combining consumption data of a national expenditure survey with data on energy intensity from life cycle analysis using a system of equations and an instrumental variable approach we find that both domains are driven by same determinants but that there is no evidence for significant substitution between them we also find an increasing effect of income on both domains with particularly important effects on embodied energy from a policy perspective our findings highlight a concern that economic growth could bring about an increasing global energy demand through energy requirement for non energy commodities however the wide spread policies targeting direct energy are unlikely to cause a substantial shift in household consumption to embodied energy

mass migration unions and government intervention the widening gap between the dismal economic situation in the less developed economies and the economic prospects of migrants to western economies has generated a potential for mass migration at the same time the developed economies have experienced high and persistent unemployment among their unskilled workers who would have to compete with new immigrants we use a model that distinguishes labor markets by skill and concentrate on the imperfectly competitive mechanism of wage determination in the unskilled labor market to demonstrate that additional immigration might be beneficial precisely because of potential replacement effects if the wages of skilled workers are positively affected by additional unskilled labor this may lead to higher employment and output our results thus qualify standard economic reasoning based on competitive models or on the literature on rural urban migration in developing countries

road transport energy demand in australia a cointegration approach abstract a cointegration framework is used to examine the short run and long run characteristics of energy demand in the australian road transport sector a lagged endogenous equation based on a partial adjustment process is proposed and estimated results indicate that energy demand output and real energy prices are integrated of order 1 and cointegrated the long run output and price elasticities of energy demand are estimated to be 0 52 and 0 12 respectively causality tests ervealed a bidirectional causality path between output and energy demand and a unidirectional path from energy consumption to prices no other causality paths between output prices and energy demand are detected the short run output elasticity of energy demand is estimated to be 0 25 based on an error correction model the short run price elasticity is found to be insignificant the inertia parameter is 0 48 corresponding to 95 of the demand adjustment occurring after five periods the results are compared with previous findings and the variations are partially attributed to the structural changes in the road transport sector in the 1980s some of which are discussed

evidence of asymmetric behavioral responses to changes in gasoline prices and taxes for different fuel types abstract using monthly data from the spanish gasoline retail market we explore asymmetries in consumers behavioral responses to changes in gasoline prices and taxes in particular we are interested in investigating whether an increase in gasoline taxes has a more negative impact on the demand than a similar in magnitude increase in the pre tax price of gasoline for different fuel types we estimate fuel consumers responses using a rich set of robust panel data models considering potential dynamic effects and endogeneity problems we find evidence to confirm the existence of asymmetric responses for the demand of unleaded fuels and agricultural diesel fuel however we cannot support this statement for the regular diesel case for this fuel both the tax exclusive price and the tax elasticities are roughly the same this result agrees with the fact that diesel drivers tend to be better informed about changes in both fuel prices and taxes some implications in terms of fiscal policy and pollution and climate change policy are also discussed

a meta analysis of the price elasticity of gasoline demand a sur approach abstract automobile gasoline demand can be expressed as a multiplicative function of fuel efficiency mileage per car and car ownership this implies a linear relationship between the price elasticity of total fuel demand and the price elasticities of fuel efficiency mileage per car and car ownership in this meta analytical study we aim to investigate and explain the variation in empirical estimates of the price elasticity of gasoline demand a methodological novelty is that we use the linear relationship between the elasticities to develop a meta analytical estimation approach based on a seemingly unrelated regression sur model with cross equation restrictions this approach enables us to combine observations of different elasticities and thus increase our sample size furthermore it allows for a more detailed interpretation of our meta regression results the empirical results of the study demonstrate that the sur approach leads to more precise results i e lower standard errors than a standard meta analytical approach we find that with mean short run and long run price elasticities of 0 34 and 0 84 respectively the demand for gasoline is not very price sensitive both in the short and the long run the impact of a change in the gasoline price on demand is mainly driven by responses in fuel efficiency and mileage per car and to a slightly lesser degree by changes in car ownership furthermore we find that study characteristics relating to the geographic area studied the year of the study the type of data used the time horizon and the functional specification of the demand equation have a significant impact on the estimated value of the price elasticity of gasoline demand

international trade and labor migration a theory of the relationship between international trade and labor mobility is developed that takes into account five characteristics of such migration including its temporary nature differences between migrant and native labor the acceptance of unpredictable conditions of employment by migrant labor the ready availability of further labor resources and international capital mobility particular attention is paid to the role of international labor migration in helping to insulate native populations from the rigors of industrial fluctuations and in helping to preserve import competing industries that would have succumbed without the availability of cheap imported labor

international migration versus foreign investment in the presence of unemployment abstract this paper extends the standard two factor one good model of international factor movements to include unemployment due to a minimum income guarantee within the capital abundant country from this country s perspective we establish important departures from previous full employment results most notably our analysis shows that 1 free factor mobility is worse than no mobility 2 the optimal degree of labour migration is zero and 3 national welfare can always be maximized by an optimal flow of capital the analysis is then extended to examine 1 illegal migration 2 subsidization of employment and 3 alternative views of unemployment

energy tax changes and competitiveness the role of adaptive capacity this paper estimates the effect of energy tax and price changes on total factor productivity tfp and net trade at the industry level using a panel of industries from european countries covering the period 1990 2003 we investigate the hypothesis that industries with high adaptive capacity measured by their relative level of labor compensation are able to mitigate the adverse effects of energy tax rises better than others we identify the pro adaptation effect by interacting wage levels a proxy for human capital with energy taxes we find that the negative marginal effect of higher energy taxes on tfp and net trade is significantly reduced for industries with stronger human capital and even turns to an overall positive effect in at least two cases up to three low wage sectors display an overall negative effect this suggests that human capital is key to adaptation to higher energy costs and climate policy in some cases making it a win win

tackling the european migration problem this paper will begin by examining the historical pattern of migration and the empirical dimension of western europes migration problem a next step examines the labor market issues and impacts on natives as western europe perceives them the paper concludes with a discussion of policy issues and options excerpt

fixed costs matter even when the costs are sunk how firms set prices is key to understanding markets standard economics dictates that the fixed costs of a firm should not affect its prices nonetheless it is common practice for firms to raise their prices after a fixed costs increase we show that firms are correct in doing so if two ubiquitous conditions apply i future profits increase in current sales and ii firms are liquidity constrained