Analysing gasoline demand elasticities: a survey

Abstract

This paper is survey of studies on gasoline demand. Although there are very many different studies in this field which sometimes appear to arrive at contradictory results, we find that with proper stratification of studies by model and data type much of the conflict turns to consensus. In this survey we classify studies by data type and by ten different categories of model and with the exception of estimates on seasonal data, which tend to be unstable, and of certain inappropriate model formulations, we find a fair degree of agreement concerning average short-run and even long-run income and price elasticities.