Are Slovak Retail Gasoline and Diesel Price Reactions on Crude Oil Changes Asymmetric?
The paper explains why the Slovak retail gasoline and diesel prices rise more rapidly when the price of crude oil increases and fall slowly when the price of crude oil decreases. The weekly data of Slovak retail gasoline and diesel prices and European Brent oil prices since the first week of 2009 ti...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Czech Statistical Office
2020-06-01
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| Series: | Statistika: Statistics and Economy Journal |
| Subjects: | |
| Online Access: | https://www.czso.cz/documents/10180/125507863/320197_20_138_Szomol%C3%A1nyi.pdf/c7ceb473-e37f-454c-a356-00ae709a48d9?version=1.0 |
| _version_ | 1811244866497150976 |
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| author | Karol Szomolányi Martin Lukáčik Adriana Lukáčiková |
| author_facet | Karol Szomolányi Martin Lukáčik Adriana Lukáčiková |
| author_sort | Karol Szomolányi |
| collection | DOAJ |
| description | The paper explains why the Slovak retail gasoline and diesel prices rise more rapidly when the price of crude oil increases and fall slowly when the price of crude oil decreases. The weekly data of Slovak retail gasoline and diesel prices and European Brent oil prices since the first week of 2009 till the second week of 2019 are used. The error correction model with irreversible behaviour of explanatory variables is specified to test asymmetric response of retail gasoline and diesel prices on changes in crude oil prices. By our assumption of linked gasoline and diesel markets, we also adopt a common co-integration relationship. Consequently, the vector error correction model is included in the analysis. An expected asymmetry in the retail fuel price reactions on crude oil changes is rejected. Our results may be informative for the future research in Slovak business cycles and in market structure of retail gasoline and diesel sellers. |
| first_indexed | 2024-04-12T14:32:20Z |
| format | Article |
| id | doaj.art-3b3bea8ad36346eca0d7eaf67c85448f |
| institution | Directory Open Access Journal |
| issn | 0322-788X 1804-8765 |
| language | English |
| last_indexed | 2024-04-12T14:32:20Z |
| publishDate | 2020-06-01 |
| publisher | Czech Statistical Office |
| record_format | Article |
| series | Statistika: Statistics and Economy Journal |
| spelling | doaj.art-3b3bea8ad36346eca0d7eaf67c85448f2022-12-22T03:29:13ZengCzech Statistical OfficeStatistika: Statistics and Economy Journal0322-788X1804-87652020-06-011002138153Are Slovak Retail Gasoline and Diesel Price Reactions on Crude Oil Changes Asymmetric?Karol Szomolányi0Martin Lukáčik1Adriana Lukáčiková 2University of Economics in Bratislava, Bratislava, SlovakiaUniversity of Economics in Bratislava, Bratislava, SlovakiaUniversity of Economics in Bratislava, Bratislava, SlovakiaThe paper explains why the Slovak retail gasoline and diesel prices rise more rapidly when the price of crude oil increases and fall slowly when the price of crude oil decreases. The weekly data of Slovak retail gasoline and diesel prices and European Brent oil prices since the first week of 2009 till the second week of 2019 are used. The error correction model with irreversible behaviour of explanatory variables is specified to test asymmetric response of retail gasoline and diesel prices on changes in crude oil prices. By our assumption of linked gasoline and diesel markets, we also adopt a common co-integration relationship. Consequently, the vector error correction model is included in the analysis. An expected asymmetry in the retail fuel price reactions on crude oil changes is rejected. Our results may be informative for the future research in Slovak business cycles and in market structure of retail gasoline and diesel sellers.https://www.czso.cz/documents/10180/125507863/320197_20_138_Szomol%C3%A1nyi.pdf/c7ceb473-e37f-454c-a356-00ae709a48d9?version=1.0gasoline and diesel retail pricescrude oil pricesirreversible modelco-integrationasymmetries between the price of crude oil and the retail fuel |
| spellingShingle | Karol Szomolányi Martin Lukáčik Adriana Lukáčiková Are Slovak Retail Gasoline and Diesel Price Reactions on Crude Oil Changes Asymmetric? Statistika: Statistics and Economy Journal gasoline and diesel retail prices crude oil prices irreversible model co-integration asymmetries between the price of crude oil and the retail fuel |
| title | Are Slovak Retail Gasoline and Diesel Price Reactions on Crude Oil Changes Asymmetric? |
| title_full | Are Slovak Retail Gasoline and Diesel Price Reactions on Crude Oil Changes Asymmetric? |
| title_fullStr | Are Slovak Retail Gasoline and Diesel Price Reactions on Crude Oil Changes Asymmetric? |
| title_full_unstemmed | Are Slovak Retail Gasoline and Diesel Price Reactions on Crude Oil Changes Asymmetric? |
| title_short | Are Slovak Retail Gasoline and Diesel Price Reactions on Crude Oil Changes Asymmetric? |
| title_sort | are slovak retail gasoline and diesel price reactions on crude oil changes asymmetric |
| topic | gasoline and diesel retail prices crude oil prices irreversible model co-integration asymmetries between the price of crude oil and the retail fuel |
| url | https://www.czso.cz/documents/10180/125507863/320197_20_138_Szomol%C3%A1nyi.pdf/c7ceb473-e37f-454c-a356-00ae709a48d9?version=1.0 |
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