Anticipated and Unanticipated Effects of Crude Oil Prices and Oil Inventory Changes on Gasoline Prices
- Topics:
- Grocery
- Source:
- University of North Carolina
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Overview: This paper proposes a method of distinguishing between the effect of anticipated and unanticipated changes in oil prices and oil inventories on the US gasoline prices. It shows that gasoline price adjustments are faster and stronger for anticipated changes in oil prices and inventory levels than for unanticipated changes. The dynamics of the gasoline price response depends on the relative importance of anticipated and unanticipated changes in oil prices and oil inventories in the model.
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Format: PDF | Size: 267KB | Date: May 2004 | Pages: 39
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