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Reversibility Test of Oil Demand Function of OECD Countries Importing Oil from Iran with an Emphasis on Technological and Environmental Considerations: Symmetric and Asymmetric Models

Author

Listed:
  • Reza Darisavi Bahmanshir

    (PhD Candidate of Economics, International Campus, Ferdowsi University of Mashhad, Iran,)

  • Ali Akbar Naji Meidani

    (Economics Department, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Iran,)

  • Mahdi Khodaparast Mashhadi

    (Economics Department, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Iran,)

  • Narges Salehnia

    (Economics Department, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Iran.)

Abstract

The study aimed to estimate the oil demand function of the OECD countries importing oil from Iran based on symmetric and asymmetric specification. To estimate symmetric and asymmetric patterns in this study, data from 1970 to 2014 for OECD countries importing oil from Iran including France, Germany, Greece, Italy, Japan, Poland, Spain, Turkey, England, South Korea, Czech, Netherlands and Belgium were used. The results of the panel root test showed the first-order difference reliability of the variables and the co-integration test confirmed a long-term relationship between the variables. Therefore, the models were estimated using the fully modified ordinary least square method (FMOLS). The results of the model estimation indicated the irreversibility of the oil demand function of the OECD countries importing oil from Iran.

Suggested Citation

  • Reza Darisavi Bahmanshir & Ali Akbar Naji Meidani & Mahdi Khodaparast Mashhadi & Narges Salehnia, 2018. "Reversibility Test of Oil Demand Function of OECD Countries Importing Oil from Iran with an Emphasis on Technological and Environmental Considerations: Symmetric and Asymmetric Models," International Journal of Energy Economics and Policy, Econjournals, vol. 8(2), pages 132-139.
  • Handle: RePEc:eco:journ2:2018-02-17
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    References listed on IDEAS

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    More about this item

    Keywords

    Oil demand function reversibility; OECD countries; modified ordinary least square method; panel co-integration test;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels

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