Retail Redlining: Are Gasoline Prices Higher In Poor And Minority Neighborhoods?
AbstractHigher retail prices are frequently cited as a cost of living in poor, minority neighborhoods. However, the empirical evidence, which primarilycomes from the grocery gap literature on food prices, has been mixed. This study uses new data on retail gasoline prices in three major U.S.cities to provide evidence on the relationship between neighborhood characteristics and consumer prices. We find that gasoline prices do not varygreatly with neighborhood racial composition, but that prices are higher in poor neighborhoods. For a 10 percentage point increase in the percentof families with incomes below the poverty line relative to families with incomes between 1 and 2 times the poverty line, retail gasoline prices are estimated to increase by an average of 0.70 percent. This differential is reduced to 0.22 percent once we add controls for costs, competition, and demand. Finally, we provide evidence that the remaining, small, price differential for poor neighborhoods is likely the result of traditional price discrimination in response to less competition and/or more inelastic demand in these locations.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Western Economic Association International in its journal Economic Inquiry.
Volume (Year): 49 (2011)
Issue (Month): 3 (07)
Contact details of provider:
Postal: 18830 Brookhurst Street, Suite 304, Fountain Valley, CA 92708 USA
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0095-2583
More information through EDIRC
Other versions of this item:
- Caitlin Knowles Myers & Grace Close & Laurice Fox & John William Meyer & Madeline Niemi, 2009. "Retail Redlining: Are gasoline prices higher in poor and minority neighborhoods?," Middlebury College Working Paper Series 0906, Middlebury College, Department of Economics.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jan Ondrich & Stephen Ross & John Yinger, 2001.
"Now You See it, Now You Don't: Why Do Real Estate Agents Withhold Available Houses from Black Customers?,"
2001-01, University of Connecticut, Department of Economics, revised Aug 2002.
- Jan Ondrich & Stephen Ross & John Yinger, 2003. "Now You See It, Now You Don't: Why Do Real Estate Agents Withhold Available Houses from Black Customers?," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 854-873, November.
- Jan Ondrich & Stephen Ross & John Yinger, 2000. "Now You See It, Now You Don't: Why Do Real Estate Agents Withhold Available Houses from Black Customers?," Center for Policy Research Working Papers 24, Center for Policy Research, Maxwell School, Syracuse University.
- Chouinard, Hayley & Perloff, Jeffrey M, 2003.
"Incidence of federal and state gasoline taxes,"
CUDARE Working Paper Series
952, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Chouinard, Hayley & Perloff, Jeffrey M., 2003. "Incidence of Federal and State Gasoline Taxes," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt5q74052d, Department of Agricultural & Resource Economics, UC Berkeley.
- Ayres, Ian & Siegelman, Peter, 1995. "Race and Gender Discrimination in Bargaining for a New Car," American Economic Review, American Economic Association, vol. 85(3), pages 304-21, June.
- repec:fth:prinin:446 is not listed on IDEAS
- Lashawn Richburg Hayes, 2000. "Do the Poor Pay More? An Empirical Investigation of Price Dispersion in Food Retailing," Working Papers 825, Princeton University, Department of Economics, Industrial Relations Section..
- Kaufman, Phillip R. & MacDonald, James M. & Lutz, Steve M. & Smallwood, David M., 1997. "Do the Poor Pay More for Food? Item Selection and Price Differences Affect Low-Income Household Food Costs," Agricultural Economics Reports 34065, United States Department of Agriculture, Economic Research Service.
- Myers, Caitlin Knowles, 2004. "Discrimination and neighborhood effects: understanding racial differentials in US housing prices," Journal of Urban Economics, Elsevier, vol. 56(2), pages 279-302, September.
- repec:pri:crcwel:974 is not listed on IDEAS
- Lashawn Hayes, 2000. "Do the poor pay more? An Empirical Investigation of Price Dispersion in Food Retailing," Working Papers 974, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
- repec:pri:indrel:825 is not listed on IDEAS
- John A. List, 2004.
"The Nature and Extent of Discrimination in the Marketplace: Evidence from the Field,"
The Quarterly Journal of Economics,
MIT Press, vol. 119(1), pages 49-89, February.
- John List, 2004. "The nature and extent of discrimination in the marketplace: Evidence from the field," Natural Field Experiments 00299, The Field Experiments Website.
- Goldberg, Pinelopi Koujianou, 1996. "Dealer Price Discrimination in New Car Purchases: Evidence from the Consumer Expenditure Survey," Journal of Political Economy, University of Chicago Press, vol. 104(3), pages 622-54, June.
- Yelowitz, Aaron & Scott, Frank & Beck, Jason, 2011. "The market for real estate brokerage services in low- and high-income neighborhoods: A 6 city study," MPRA Paper 35608, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.