publication . Article . Preprint . 2014

Gasoline prices, transport costs, and the U.S. business cycles

HAKAN YILMAZKUDAY;
Open Access
  • Published: 01 Jun 2014 Journal: Journal of Economic Dynamics and Control, volume 45, pages 165-179 (issn: 0165-1889, Copyright policy)
  • Publisher: Elsevier BV
Abstract
The e¡èects of gasoline prices on the U.S. business cycles are investigated. In order to distinguish between gasoline supply and gasoline demand shocks, the price of gasoline is endogenously determined through a transportation sector that uses gasoline as an input of production. The model is estimated for the U.S. economy using five macroeconomic time series, including data on transport costs and gasoline prices. The results show that although standard shocks in the literature (e.g., technology shocks, monetary policy shocks) have significant effects on the U.S. business cycles in the long run, gasoline supply and demand shocks play an important role in the shor...
Subjects
free text keywords: Economics and Econometrics, Control and Optimization, Applied Mathematics, Business Cycles, Transport Costs, Gasoline Prices, jel:E32, jel:E52, jel:F41
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