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Symmetric transmission of prices in the retail gasoline market in Brazil

Author

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  • da Silva, André Suriane
  • Vasconcelos, Cláudio Roberto Fóffano
  • Vasconcelos, Silvinha Pinto
  • de Mattos, Rogério Silva

Abstract

This study aimed to analyze the existence of asymmetric transmission of prices in the Brazilian gasoline market following a regional approach, using a disaggregated data set for the period between May 2004 and February 2011. The main result finds evidence of symmetric price transmission in retail gasoline market due to price shocks arising from the distributors. It is important to highlight that the disaggregation of the data allowed the study to show that the asymmetry is not a national problem, but specific to each city and different for each of the regions in Brazil.

Suggested Citation

  • da Silva, André Suriane & Vasconcelos, Cláudio Roberto Fóffano & Vasconcelos, Silvinha Pinto & de Mattos, Rogério Silva, 2014. "Symmetric transmission of prices in the retail gasoline market in Brazil," Energy Economics, Elsevier, vol. 43(C), pages 11-21.
  • Handle: RePEc:eee:eneeco:v:43:y:2014:i:c:p:11-21
    DOI: 10.1016/j.eneco.2014.02.002
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    References listed on IDEAS

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    Cited by:

    1. repec:gam:jsusta:v:10:y:2018:i:4:p:1080-:d:139614 is not listed on IDEAS
    2. Hector M. Nuñez and Jesús Otero, 2017. "Integration in Gasoline and Ethanol Markets in Brazil over Time and Space under the Flex-fuel Technology," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    3. Leonardo Cardoso & Mauricio Bittencourt & Elena Irwin, 2016. "Price asymmetry and retailers heterogeneity in Brazilian gas stations," ERSA conference papers ersa16p796, European Regional Science Association.

    More about this item

    Keywords

    Gasoline; Price asymmetry; Threshold cointegration;

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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