Demand for gasoline is more price-inelastic than commonly thought

Demand for gasoline is more price-inelastic than commonly thought Abstract: One of the most frequently examined statistical relationships in energy economics has been the price elasticity of gasoline demand. We conduct a quantitative survey of the estimates of elasticity reported for various countries around the world. Our meta- analysis indicates that the literature suffers from publication selection bias: insignificant or positive estimates of the price elasticity are rarely reported, although implausibly large negative estimates are reported regularly. In consequence, the aver- age published estimates of both short- and long-run elasticities are exaggerated twofold. Using mixed effects multilevel meta-regression, we show that after correction for publication bias the average long-run elasticity reaches -0:31 and the average short-run elasticity only -0:09.


Issue Date:
Sep 01 2011
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/120416
Total Pages:
20
Series Statement:
CUDARE Working Papers
1118




 Record created 2017-04-01, last modified 2017-08-26

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