Abstract

http://ssrn.com/abstract=2034408
 


 



Changes in Gasoline Prices and Consumer Sentiment


Mark A. Johnson


Loyola University Maryland

Douglas J. Lamdin


University of Maryland, Baltimore County - Department of Economics

January 1, 2012

Journal of Applied Business and Economics, Forthcoming

Abstract:     
Volatile gasoline prices are frequently mentioned in the press. Using more than thirty years of consumer sentiment data, we analyze the relationship between changes in gasoline prices and its impact on consumer sentiment. We find a negative relationship between changes in gasoline prices and its impact on consumer sentiment, suggesting that as gasoline prices rise (fall), this negatively (positively) impacts consumer sentiment. Additionally, causality analysis provides support that changes in gasoline prices leads consumer sentiment and changes in consumer sentiment. Our results are consistent with the documented fact that the demand for gasoline by consumers is inelastic in the short-run.

Number of Pages in PDF File: 10

Keywords: consumer sentiment, gasoline prices, causality tests

JEL Classification: Q41, C2

Accepted Paper Series


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Date posted: April 4, 2012 ; Last revised: June 12, 2013

Suggested Citation

Johnson, Mark A. and Lamdin, Douglas J., Changes in Gasoline Prices and Consumer Sentiment (January 1, 2012). Journal of Applied Business and Economics, Forthcoming. Available at SSRN: http://ssrn.com/abstract=2034408

Contact Information

Mark A. Johnson
Loyola University Maryland ( email )
4501 North Charles Street
Baltimore, MD 21210
United States
Douglas J. Lamdin (Contact Author)
University of Maryland, Baltimore County - Department of Economics ( email )
1000 Hilltop Circle
Baltimore, MD 21250
United States
410-455-2672 (Phone)
410-455-1054 (Fax)
HOME PAGE: http://www.umbc.edu/economics/faculty_cv/lamdin.html
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