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The Regional Demand for Petrol in Australia

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  • W. A. DONNELLY

Abstract

The regional demand for petrol in Australia is estimated using quarterly data on a State basis for the period from the September quarter 1958 through the June quarter 1981. A dynamic demand model is postulated and estimates obtained using an iterative Zellner procedure. The results suggest that per capita petrol demand is not income elastic as reported in other studies, and support the hypothesis that demand is price inelastic. In addition, the States exhibit statistically significant differential responses to price and income shocks. This implies that the specification of a single national demand function may be misleading.

Suggested Citation

  • W. A. Donnelly, 1982. "The Regional Demand for Petrol in Australia," The Economic Record, The Economic Society of Australia, vol. 58(4), pages 317-327, December.
    • Handle: RePEc:bla:ecorec:v:58:y:1982:i:4:p:317-327
    DOI: 10.1111/j.1475-4932.1982.tb00382.x
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    References listed on IDEAS

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    Cited by:

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    2. Martijn Brons & Peter Nijkamp & Eric Pels & Piet Rietveld, 2006. "A Meta-analysis of the Price Elasticity of Gasoline Demand. A System of Equations Approach," Tinbergen Institute Discussion Papers 06-106/3, Tinbergen Institute.
    3. Brons, Martijn & Nijkamp, Peter & Pels, Eric & Rietveld, Piet, 2008. "A meta-analysis of the price elasticity of gasoline demand. A SUR approach," Energy Economics, Elsevier, vol. 30(5), pages 2105-2122, September.
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