New evidence on the asymmetry in gasoline price: volatility versus margin?

Autor:	Stanislav Radchenko, Salah Abosedra
Rok vydání:	2006
Předmět:	Marginal cost Financial economics business.industry Spot market Regression analysis Oligopoly Econometric model Petroleum industry Econometrics Economics General Earth and Planetary Sciences Gasoline Volatility (finance) business General Environmental Science
Zdroj:	OPEC Review. 30:125-150
ISSN:	1468-0076 0277-0180
DOI:	10.1111/j.1468-0076.2006.00165.x
Popis:	This paper examines recent evidence on the role that gasoline margins and volatility play in the asymmetric response of gasoline prices to changes in oil prices at different stages of distribution process. In a regression model with margins, we find that margins are statistically significant in explaining asymmetry between crude oil and spot gasoline prices, spot gasoline prices and wholesale gasoline prices, and wholesale gasoline prices and retail prices. In a regression model with input volatility, we find evidence that volatility is responsible for asymmetry between wholesale gasoline prices and retail gasoline prices. When both, gasoline margins and gasoline volatility are included in the regression, we find evidence supporting margins, the search theory, volatility, the oligopolistic coordination theory and an explanation of asymmetry.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::36fac9003ef812447008b55a6c920086 https://doi.org/10.1111/j.1468-0076.2006.00165.x Zobrazit plný text záznamu Plný text ve formátu PDF