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COVID-19 and Daily Oil Price Pass-Through

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  • Hakan Yilmazkuday

    (Department of Economics, Florida International University)

Abstract

This paper investigates the (crude) oil price pass-through into gasoline spot and gasoline retail prices in the U.S. due to the e¤ects of coronavirus disease 2019 (COVID-19). The investigation is achieved by using daily data in a structural vector autoregression framework. The oil price pass-through is measured as the cumulative impulse response of gasoline spot or gasoline retail prices divided by the cumulative impulse response of oil prices, both following a percentage change in total number of the U.S. COVID-19 cases. The results suggest evidence for complete pass-through of oil prices into gasoline spot prices, whereas the corresponding pass-through into gasoline retail prices is about 29 percent in the long run.

Suggested Citation

  • Hakan Yilmazkuday, 2021. "COVID-19 and Daily Oil Price Pass-Through," Working Papers 2113, Florida International University, Department of Economics.
    • Handle: RePEc:fiu:wpaper:2113
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    References listed on IDEAS

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    Cited by:

    1. Salisu, Afees A. & Isah, Kazeem & Oloko, Tirimisiyu O., 2024. "Technology shocks and crude oil market connection: The role of climate change," Energy Economics, Elsevier, vol. 130(C).

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    Keywords

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    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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