On the dynamics of gasoline market integration in the United States: Evidence from a pair-wise approach

This paper employs a pair-wise approach to examine regional integration in the US gasoline market. Using gasoline price data at the state level over a period of more than two decades, we find strong support for the view that the law of one price holds in regional markets, as more than 80% of bivaria...

ver descrição completa

Detalhes bibliográficos
Autores: Holmes, Mark J., Panagiotidis, Theodore, Otero Cardona, Jesús Gilberto
Formato: artículo
Estado:Versión publicada
Fecha de publicación:2013
País:Colombia
Recursos:Universidad del Rosario
Repositorio:Repositorio EdocUR - U. Rosario
Idioma:inglés
OAI Identifier:oai:repository.urosario.edu.co:10336/23932
Acesso em linha:https://doi.org/10.1016/j.eneco.2012.10.008
https://repository.urosario.edu.co/handle/10336/23932
Access Level:acceso abierto
Palavra-chave:Bivariate
Gas stations
Gasoline prices
Law of one prices
Market integration
Pair-wise approach
Panel data
Refining capacity
Regional integration
Regional markets
Commerce
Costs
Integration
Refining
Taxation
Gasoline
Economic integration
Gas supply
Price dynamics
United States
Speed of adjustment
id CO_6fb2c05ef69628f6d23e1cccee1fca18
oai_identifier_str oai:repository.urosario.edu.co:10336/23932
network_acronym_str CO
network_name_str Colombia
repository_id_str
spelling On the dynamics of gasoline market integration in the United States: Evidence from a pair-wise approachHolmes, Mark J.Panagiotidis, TheodoreOtero Cardona, Jesús GilbertoBivariateGas stationsGasoline pricesLaw of one pricesMarket integrationPair-wise approachPanel dataRefining capacityRegional integrationRegional marketsCommerceCostsIntegrationRefiningTaxationGasolineEconomic integrationGas supplyPanel dataPrice dynamicsUnited StatesGasolineMarket integrationPair-wise approachPanel dataSpeed of adjustmentThis paper employs a pair-wise approach to examine regional integration in the US gasoline market. Using gasoline price data at the state level over a period of more than two decades, we find strong support for the view that the law of one price holds in regional markets, as more than 80% of bivariate price differentials turn out to be stationary. Furthermore, we uncover evidence that the speed at which prices converge to the long-run equilibrium depends upon the distance between states. Asymmetries are also present in this relationship. Our findings suggest that the more similar are states with respect to taxation, gas stations and refining capacity, the faster is the speed of adjustment towards the long-run equilibrium. © 2012 Elsevier B.V.20132020-05-26T00:06:49Zinfo:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://doi.org/10.1016/j.eneco.2012.10.0080140988318736181https://repository.urosario.edu.co/handle/10336/23932reponame:Repositorio EdocUR - U. Rosarioinstname:Universidad del Rosarioinstacron:Universidad del Rosarioenghttps://www.scopus.com/inward/record.uri?eid=2-s2.0-84874322217&doi=10.1016%2fj.eneco.2012.10.008&partnerID=40&md5=82af018dc7ff66fcb5ddf66b18140837info:eu-repo/semantics/openAccess2022-05-02T07:37:14Z
dc.title.none.fl_str_mv On the dynamics of gasoline market integration in the United States: Evidence from a pair-wise approach
title On the dynamics of gasoline market integration in the United States: Evidence from a pair-wise approach
spellingShingle On the dynamics of gasoline market integration in the United States: Evidence from a pair-wise approach
Holmes, Mark J.
Bivariate
Gas stations
Gasoline prices
Law of one prices
Market integration
Pair-wise approach
Panel data
Refining capacity
Regional integration
Regional markets
Commerce
Costs
Integration
Refining
Taxation
Gasoline
Economic integration
Gas supply
Panel data
Price dynamics
United States
Gasoline
Market integration
Pair-wise approach
Panel data
Speed of adjustment
title_short On the dynamics of gasoline market integration in the United States: Evidence from a pair-wise approach
title_full On the dynamics of gasoline market integration in the United States: Evidence from a pair-wise approach
title_fullStr On the dynamics of gasoline market integration in the United States: Evidence from a pair-wise approach
title_full_unstemmed On the dynamics of gasoline market integration in the United States: Evidence from a pair-wise approach
title_sort On the dynamics of gasoline market integration in the United States: Evidence from a pair-wise approach
dc.creator.none.fl_str_mv Holmes, Mark J.
Panagiotidis, Theodore
Otero Cardona, Jesús Gilberto
author Holmes, Mark J.
author_facet Holmes, Mark J.
Panagiotidis, Theodore
Otero Cardona, Jesús Gilberto
author_role author
author2 Panagiotidis, Theodore
Otero Cardona, Jesús Gilberto
author2_role author
author
dc.subject.none.fl_str_mv Bivariate
Gas stations
Gasoline prices
Law of one prices
Market integration
Pair-wise approach
Panel data
Refining capacity
Regional integration
Regional markets
Commerce
Costs
Integration
Refining
Taxation
Gasoline
Economic integration
Gas supply
Panel data
Price dynamics
United States
Gasoline
Market integration
Pair-wise approach
Panel data
Speed of adjustment
topic Bivariate
Gas stations
Gasoline prices
Law of one prices
Market integration
Pair-wise approach
Panel data
Refining capacity
Regional integration
Regional markets
Commerce
Costs
Integration
Refining
Taxation
Gasoline
Economic integration
Gas supply
Panel data
Price dynamics
United States
Gasoline
Market integration
Pair-wise approach
Panel data
Speed of adjustment
description This paper employs a pair-wise approach to examine regional integration in the US gasoline market. Using gasoline price data at the state level over a period of more than two decades, we find strong support for the view that the law of one price holds in regional markets, as more than 80% of bivariate price differentials turn out to be stationary. Furthermore, we uncover evidence that the speed at which prices converge to the long-run equilibrium depends upon the distance between states. Asymmetries are also present in this relationship. Our findings suggest that the more similar are states with respect to taxation, gas stations and refining capacity, the faster is the speed of adjustment towards the long-run equilibrium. © 2012 Elsevier B.V.
publishDate 2013
dc.date.none.fl_str_mv 2013
2020-05-26T00:06:49Z
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv https://doi.org/10.1016/j.eneco.2012.10.008
01409883
18736181
https://repository.urosario.edu.co/handle/10336/23932
url https://doi.org/10.1016/j.eneco.2012.10.008
https://repository.urosario.edu.co/handle/10336/23932
identifier_str_mv 01409883
18736181
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv https://www.scopus.com/inward/record.uri?eid=2-s2.0-84874322217&doi=10.1016%2fj.eneco.2012.10.008&partnerID=40&md5=82af018dc7ff66fcb5ddf66b18140837
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:Repositorio EdocUR - U. Rosario
instname:Universidad del Rosario
instacron:Universidad del Rosario
instname_str Universidad del Rosario
instacron_str Universidad del Rosario
institution Universidad del Rosario
reponame_str Repositorio EdocUR - U. Rosario
collection Repositorio EdocUR - U. Rosario
_version_ 1825051768356077568
score 15,198674

Registos relacionados