Beyond the Average Elasticity – Applying Quantile Panel Regression to German Household Mobility Data
AbstractThis paper employs quantile panel regression to the study of fuel price elasticities. Contrasting with standard panel approaches, this method reveals the impact of explanatory variables across all points in the conditional distribution of the response variable while controlling for unobserved heterogeneity. Applying quantile panel regression to German household data demonstrates that fuel price elasticities are very high in magnitude – below -0.8 – for a small segment of households whose car mileage is low, but that this effect tapers off rapidly among households with higher car mileage. These findings have implications for policy instruments that rely on estimates of fuel price elasticities, for example fuel taxation.
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Bibliographic InfoPaper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0392.
Length: 27 pages
Date of creation: Dec 2012
Date of revision:
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
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