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New York mark-ups on petroleum products

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Author

  • Szymon Wlaslowski
  • Birger Nilsson
  • Jane M. Binner
  • Monica Guiletti
  • Nathan Joseph

Summary, in English

This paper analyzes rigidities in the behavior of the mark-up on regular, midgrade and premium varieties of petrol in the New York area using a set of weekly frequency data and a methodology that analyzes the pricing process using deterministic and stochastic techniques. The results are consistent across methodologies and indicate that the speeds of adjustment to the long run equilibrium mark-up differ across varieties of petrol with margins of the premium variety falling faster than they rise, contrary to the popular claim of welfare-decreasing asymmetries in price transmission.

Publishing year

2010

Language

English

Publication/Series

The Manchester School

Document type

Working paper

Publisher

Department of Economics, Lund University

Topic

  • Economics

Keywords

  • Asymmetric Price Transmission
  • Markov Switching model
  • SETAR model
  • Petroleum

Status

Inpress