scholarly journals Measuring the price responsiveness of gasoline demand

2009 ◽  
Author(s):  
Richard Blundell ◽  
Matthias Parey ◽  
Joel L. Horowitz
Keyword(s):  
Gasoline Demand ◽  
Price Responsiveness

scholarly journals High Frequency Evidence on the Demand for Gasoline

2017 ◽  
Vol 9 (3) ◽  
pp. 314-347 ◽  
Author(s):  
Laurence Levin ◽  
Matthew S. Lewis ◽  
Frank A. Wolak
Keyword(s):  
High Frequency ◽  
The United States ◽  
Temporal Aggregation ◽  
Relative Importance ◽  
Gasoline Demand ◽  
Aggregated Data ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand ◽  
Order Of Magnitude ◽  
Price Responsiveness

Daily city-level expenditures and prices are used to estimate the price responsiveness of gasoline demand in the United States. Using a frequency of purchase model that explicitly acknowledges the distinction between gasoline demand and gasoline expenditures, the price elasticity of demand is consistently found to be an order of magnitude larger than estimates from recent studies using more aggregated data. Estimating demand using higher levels of spatial and temporal aggregation is shown to produce increasingly inelastic estimates. A decomposition is then developed and implemented to understand the relative importance of several different factors in explaining this result. (JEL C51, L71, Q35)

scholarly journals Estimation of a Heterogeneous Demand Function with Berkson Errors

2021 ◽  
pp. 1-40
Author(s):  
Richard Blundell ◽  
Joel Horowitz ◽  
Matthias Parey
Keyword(s):  
Unobserved Heterogeneity ◽  
Market Price ◽  
Weighted Average ◽  
External Information ◽  
Gasoline Demand ◽  
Empirical Microeconomics ◽  
Shape Constraint ◽  
Heterogeneous Demand ◽  
Price Distribution ◽  
Transaction Price

Berkson errors are commonplace in empirical microeconomics. In consumer demand this form of measurement error occurs when the price an individual pays is measured by the (weighted) average price paid by individuals in a group (e.g., a county), rather than the true transaction price. We show the importance of Berkson errors for demand estimation with nonseparable unobserved heterogeneity. We develop a consistent estimator using external information on the true price distribution. Examining gasoline demand in the U.S., we document substantial within-market price variability. Accounting for Berkson errors is quantitatively important. Imposing the Slutsky shape constraint reduces sensitivity to Berkson errors.

scholarly journals The role of maize hybrids in current trends of bioethanol production

2020 ◽  
Vol 26 (2) ◽  
pp. 21-29
Author(s):  
Valentina Nikolić ◽  
Slađana Žilić ◽  
Milica Radosavljević ◽  
Marijana Simić
Keyword(s):  
Fossil Fuels ◽  
Raw Materials ◽  
Alternative Fuel ◽  
Bioethanol Production ◽  
Economic Activities ◽  
Fuel Production ◽  
Gasoline Demand ◽  
Current Trends ◽  
Production And Consumption

Bioethanol is a biofuel that is mostly used as a replacement for fossil fuels worldwide with yearly production reaching nearly 110 billion liters in 2019. Trends of producing this alternative fuel are rising and maize is considered as one of the best renewable raw materials for the production of fuel ethanol due to the high content of starch in the grain. Taking into account that Serbia is one of the most prominent maize producers in Europe, the surpluses of this crop could be directed towards bioethanol production. Even though there is no organized production and consumption of bioethanol as an automotive fuel in Serbia, the Serbian Government has recently introduced some new regulations regarding biofuels. However, due to the reduction of economic activities since the onset of COVID-19 pandemic in 2020, the global demand for crude oil has fallen sharply, negatively affecting the gasoline demand, and thus for bioethanol, which makes the future of this alternative fuel production notably uncertain.

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