• Medientyp: E-Artikel
  • Titel: The Dynamics of Gasoline Prices: Evidence from Daily French Micro Data
  • Beteiligte: GAUTIER, ERWAN; LE SAOUT, RONAN
  • Erschienen: Wiley Subscription Services, 2015
  • Erschienen in: Journal of Money, Credit and Banking
  • Sprache: Englisch
  • ISSN: 0022-2879; 1538-4616
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  • Beschreibung: <p>Using millions of individual gasoline prices collected at a daily frequency, we examine the speed at which market prices of refined oil are transmitted to retail gasoline prices in France. For that, we estimate a reduced-form model of state-dependent pricing where thresholds triggering price changes are allowed to vary over time and depend on the duration since the last price change. We find that the degree of pass-through of wholesale prices to retail gasoline prices is on average 0.77 for diesel and 0.67 for petrol and depend on local market characteristics. The duration for a shock to be fully transmitted into prices is about 10 days. There is no significant asymmetry in the transmission of wholesale price to retail prices. Finally, the duration since the last price change has a significant effect on thresholds triggering price changes but a large variance of idiosyncratic shocks on thresholds is also crucial to replicate the size distribution of price changes.</p>