Inventories and upstream gasoline price dynamics

A-Tier
Journal: Energy Economics
Year: 2012
Volume: 34
Issue: 1
Pages: 208-214

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:eee:eneeco:v:34:y:2012:i:1:p:208-214
Journal Field
Energy
Author Count
1
Added to Database
2026-01-25