Inventories and upstream gasoline price dynamics

Gerard H. Kuper*

*Bijbehorende auteur voor dit werk

OnderzoeksoutputAcademicpeer review

11 Citaten (Scopus)

Samenvatting

This paper sheds new light on the asymmetric dynamics in upstream U.S. gasoline prices. The model is based on Pindyck's inventory model of commodity price dynamics. We show that asymmetry in gasoline price dynamics is caused by changes in the net marginal convenience yield: higher costs of marketing and storage lead to rising gasoline prices, whereas a drop in these costs lowers gasoline prices. The former effect is stronger. This indicates asymmetric dynamics. We also analyze the asymmetry across the sample by analyzing recursive and rolling regressions. (C) 2011 Elsevier B.V. All rights reserved.

Originele taal-2English
Pagina's (van-tot)208-214
Aantal pagina's7
TijdschriftEnergy Economics
Volume34
Nummer van het tijdschrift1
DOI's
StatusPublished - jan-2012

Citeer dit