The Elasticity of Demand for Gasoline: Evidence from the Czech Republic
|Author:||Mgr. Radoslav Lacko|
|Year:||2019 - summer|
|Leaders:|| Mgr. Petr Polák MSc. Ph.D.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||Studying the price responsiveness of the fuel demand is popular topic among
researchers. The price elasticity is used for predicting future tax revenues, or
fuel consumption under various situations. This thesis focuses on elasticity
estimation for the Czech Republic using high frequency evidence. We use the
process of data mining to get the Czech evidence. Observed elasticity differs by
the data aggregation level. Estimated long-run elasticity range between −0.38
and −0.68 for gasoline users and between −0.43 and −0.54 for diesel users.
Much lower elasticity was estimated in the short-run that confirms economic