This paper re-examines the issue ofasymmetries in the transmission of shocks to crude oil prices onto the retail price ofgasoline. The distinguishing features are: (i) use ofupdated and comparable data to carry out an international comparison ofgasoline markets; (ii) twostage modeling ofthe transmission mechanism, in order to assess possible asymmetries at either the refinery stage, the distribution stage or both; (iii) use ofasymmetric error correction models to distinguish between short-run and long-run asymmetries; (iv) explicit, possibly asymmetric, role ofthe exchange rate; (v) bootstrapping of F-tests ofasymmetries, in order to overcome the low-power problem ofconventional 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.

Rockets and feathers revisited: an international comparison on European gasoline markets / M. Galeotti, A. Lanza, M. Manera. - In: ENERGY ECONOMICS. - ISSN 0140-9883. - 25:2(2003), pp. 175-190.

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

M. Galeotti
;
2003

Abstract

This paper re-examines the issue ofasymmetries in the transmission of shocks to crude oil prices onto the retail price ofgasoline. The distinguishing features are: (i) use ofupdated and comparable data to carry out an international comparison ofgasoline markets; (ii) twostage modeling ofthe transmission mechanism, in order to assess possible asymmetries at either the refinery stage, the distribution stage or both; (iii) use ofasymmetric error correction models to distinguish between short-run and long-run asymmetries; (iv) explicit, possibly asymmetric, role ofthe exchange rate; (v) bootstrapping of F-tests ofasymmetries, in order to overcome the low-power problem ofconventional 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.
Gasoline prices; Speed ofadjustment; Asymmetric adjustment; Exchange rate
Settore SECS-P/01 - Economia Politica
2003
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2434/700509
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