Google Searches and Gasoline Prices
in proceedings of the 14th International Conference on the European Energy Market (EEM), 2017, Forthcoming
5 Pages Posted: 20 Jun 2017
Date Written: June 16, 2017
Abstract
We study the relation between gasoline prices and Google searches for the term “gasoline prices”. Utilizing the framework of a vector autoregressive model and Granger causality, we find a two-way relationship between gasoline prices and Google searches. In both directions, the relation is negative, i.e. an increase in one of the variables leads to a decrease in the other variable. Moreover, we find the strongest evidence for causality from Google searches to gasoline prices.
Keywords: gasoline prices, Google searches, Granger causality
Suggested Citation: Suggested Citation