Highlights ► Unobservable habits are modeled in an improved way. ► A statistical test is provided to discriminate between proposed model and the standard model. ► For Australia and the US, the standard model is rejected. ► Confidence intervals for price and income elasticities become larger.
Abstract We argue that single-equation dynamic demand models applied to estimating gasoline demand should capture the slow evolution of unobservable habits that in part determine vehicle and gasoline usage. Inclusion of unobservable habits implies that single-equation models should include moving-average terms. Ordinary least squares estimation is thus inappropriate. Using examples from Australia and the US, it is shown that estimates of long-run price and income elasticities become much less precise.
Should single-equation dynamic gasoline demand models include moving average terms?
Transportation Research Part D: Transport and Environment ; 16 , 6 ; 474-477
2011-01-01
4 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
Should single-equation dynamic gasoline demand models include moving average terms?
Online Contents | 2011
|White cars for 1910 include a gasoline
Engineering Index Backfile | 1909
Should a master's program include an internship
British Library Online Contents | 2002
Average American gasoline vehicle practice
Engineering Index Backfile | 1901
|Should Driver Education Include Training Against Instinctive Human Reactions?
British Library Conference Proceedings | 2005
|