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New York mark-ups on petroleum products

Author

Listed:
  • Wlaslowski, Szymon

    () (Aston Business School)

  • Binner, Jane

    () (Sheffield University)

  • Guiletti, Monica

    () (Aston Business School)

  • Joseph, Nathan

    () (Aston Business School)

  • Nilsson, Birger

    () (Department of Economics, Lund University)

Abstract

This paper analyzes rigidities in the behavior of mark-up on petroleum products in the New York area using a new set of high-frequency data. We use a methodology that accounts both for deterministic and stochastic nature of petrol prices. The results indicate that the adjustment to the long run equilibrium mark-up is non-linear with adjustment speeds that are equal across regimes for two out of the three series analyzed. For one of the series the adjustment is beneficial for end consumers as we find that prices fall faster than they rise.

Suggested Citation

  • Wlaslowski, Szymon & Binner, Jane & Guiletti, Monica & Joseph, Nathan & Nilsson, Birger, 2007. "New York mark-ups on petroleum products," Working Papers 2008:2, Lund University, Department of Economics.
  • Handle: RePEc:hhs:lunewp:2008_002
    as

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    File URL: http://project.nek.lu.se/publications/workpap/Papers/WP08_2.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    asymmetric price transmission; petroleum; SETAR model; regime switching model;

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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