Abstract

http://ssrn.com/abstract=2034478
 


 



Understanding Gasoline Price Dispersion


Demet Yilmazkuday


Florida International University

Hakan Yilmazkuday


Florida International University

May 18, 2015


Abstract:     
This paper models and estimates the gasoline price dispersion across time and space by introducing and using a unique gasoline price data set at the gas-station level within the U.S.. Nationwide effects (measured by time fixed effects or crude oil prices) explain up to about 51% of the gasoline price dispersion followed by the contributions of refinery-specific costs up to about 33% (which have been ignored in the literature due to using local data sets), state taxes about 12%, and spatial factors (such as local agglomeration externalities, land prices, distribution costs of gasoline) up to about 4%. The contribution of brand-specific factors are relatively minor.

Number of Pages in PDF File: 41

Keywords: Gasoline Prices, Gas-Station Level Analysis, Nighttime Lights, Land Prices, the United States

JEL Classification: L11, L81, R32, R41


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Date posted: April 4, 2012 ; Last revised: May 19, 2015

Suggested Citation

Yilmazkuday, Demet and Yilmazkuday, Hakan, Understanding Gasoline Price Dispersion (May 18, 2015). Available at SSRN: http://ssrn.com/abstract=2034478 or http://dx.doi.org/10.2139/ssrn.2034478

Contact Information

Demet Yilmazkuday
Florida International University ( email )
Miami, FL 33199
United States
Hakan Yilmazkuday (Contact Author)
Florida International University ( email )
Miami, FL 33199
United States
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