Publication detail

Income Elasticity of Gasoline Demand: A Meta Analysis

Author(s): doc. PhDr. Tomáš Havránek Ph.D., Kokeš Ondřej
Type: IES Working Papers
Year: 2013
Number: 2
ISSN / ISBN:
Published in: IES Working Papers 2/2013
Publishing place: Prague
Keywords: Gasoline, income elasticity, publication bias, meta-analysis
JEL codes: C83, Q41
Suggested Citation: Havránek, T., Kokeš, O. (2013). “ Income Elasticity of Gasoline Demand: A Meta-Analysis ” IES Working Paper 02/2013. IES FSV. Charles University.
Abstract: 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.
Downloadable: WP_2013_02_Havranek_Kokes

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