English, Article edition: Do retail gasoline prices respond asymmetrically to cost shocks? The influence of Edgeworth Cycles Michael Noel

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  • article
Language
  • English

Edition details

Title
  • Do retail gasoline prices respond asymmetrically to cost shocks? The influence of Edgeworth Cycles
Author
  • Michael Noel
Physical Description
  • article
Notes
  • Asymmetric price cycles similar to Edgeworth Cycles are appearing in increasingly many retail gasoline markets in the United States and worldwide. The asymmetry in the cycles can give rise to a finding of asymmetric price responses to cost shocks (asymmetric passthrough). This article estimates asymmetric passthrough for the market of Toronto, which exhibits cycles, and decomposes it into two components-that part explainable by the cycles and that part driven by other unknown sources. Significant asymmetric passthrough is found, with increases passed through more quickly than decreases. A significant cause of the finding is the presence of the cycles themselves. Copyright (c) 2009, RAND..
  • RePEc:bla:randje:v:40:y:2009:i:3:p:582-595
Language
  • English
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