Gasoline demand in the OECD. An application of pooling and testing procedures

Badi H. Baltagi, James M. Griffin

Research output: Contribution to journalArticlepeer-review

109 Scopus citations

Abstract

This study utilizes a pooled inter-country data set, finding the long-run price-elasticity falls in the range -0.55 to -0.9, depending on the choice of pooled estimators. The estimators included the OLS, within-, and between-country estimators, plus five feasible GLS estimators. Even allowing for a ten-year distributed lag on price to reflect changes in auto-efficiency characteristics, the within-country estimator yields appreciably more inelastic estimates than did the O:S estimator, which was heavily influenced by the between- or inter-country variation. This difference raises intriguing questions for future research.

Original languageEnglish (US)
Pages (from-to)117-137
Number of pages21
JournalEuropean Economic Review
Volume22
Issue number2
DOIs
StatePublished - Jul 1983
Externally publishedYes

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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