Income elasticity of gasoline demand: A meta analysis

Arbeitspapier

In this paper we quantitatively synthesize empirical estimates of the income elasticity of gasoline demand reported in previous studies. The studies cover many countries and report a mean elasticity of 0.28 for the short run and 0.66 for the long run. We show, however, that these mean estimates are biased upwards because of publication bias - the tendency to suppress negative and insignificant estimates of the elasticity. Using mixed-effects multilevel meta-regression we filter out publication bias from the literature. Our results suggest that the income elasticity of gasoline demand is smaller than commonly thought: the corrected estimate is 0.1 for the short run and 0.46 for the long run.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IES Working Paper ; No. 02/2013

Classification and Topics

• Classification: Wirtschaft ; Survey Methods; Sampling Methods ; Energy: Demand and Supply; Prices
• Subject: gasoline ; income elasticity ; publication bias ; meta-analysis

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Havránek, Tomáš ; Ondřej, Kokeš
• Event: Veröffentlichung
• (who): Charles University in Prague, Institute of Economic Studies (IES)
• (where): Prague
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/83347
• Last update: 10.03.2025, 11:44 AM CET