Gasoline Price Asymmetries in the Euro Zone
8 Pages Posted: 27 Mar 2012
Date Written: August 1, 2011
Abstract
This paper uses the generalized method of moments (GMM) estimation to a panel data error correction model (ECM) in order to measure the asymmetries in the transmission of shocks to input prices and exchange rate onto the wholesale and retail gasoline price respectively. For this purpose, we use an updated data set of weekly observations covering the period from January 2000 to February 2011 for eleven euro zone countries (Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain). The results favor the common perception that retail and wholesale gasoline prices respond asymmetrically to cost increases and decreases.
Keywords: Generalized method of moments, panel data, asymmetries, euro zone, error correction models
JEL Classification: L11, C51, C33
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Rockets and Feathers Revisited: An International Comparison on European Gasoline Markets
By Matteo Manera, Marzio Galeotti, ...
-
Econometric Models of Asymmetric Price Transmission
By Matteo Manera and Giliola Frey
-
Asymmetric Error Correction Models for the Oil-Gasoline Price Relationship
By Matteo Manera and Margherita Grasso
-
Cost Pass-Through in the U.S. Coffee Industry
By Ephraim Leibtag, Alice Orcutt Nakamura, ...
-
Understanding the Competitiveness Implications of Future Phases of EU ETS on the Industrial Sectors
-
Exchange Rate Pass-through in Central and Eastern European Member States
By John Beirne and Martin Bijsterbosch
-
Cost Pass-Through of the EU Emissions Allowances: Examining the European Petroleum Markets