| ID | 112893 |
| Title Proper | Short-run price and income elasticity of gasoline demand |
| Other Title Information | evidence from Lebanon |
| Language | ENG |
| Author | Sita, Bernard Ben ; Marrouch, Walid ; Abosedra, Salah |
| Publication | 2012. |
| Summary / Abstract (Note) | We empirically estimate the demand for gasoline in the presence of multiple shifts caused by structural breaks using monthly data from Lebanon covering the period 2000:M1-2010:M12. Consistent with most studies in the literature, our study reports that gasoline is price and income inelastic in the short-run. However, when a single and multiple breaks are introduced, the consumers' responsiveness to gasoline price and income increase. Since both price and income elasticity are sensitive to structural changes, a policy that pleads for a flat excise tax may not be optimal with respect to either the cyclical pattern of government revenues or the internalization of international environment standards. |
| `In' analytical Note | Energy Policy Vol. 46; Jul 2012: p.109-115 |
| Journal Source | Energy Policy Vol. 46; Jul 2012: p.109-115 |
| Key Words | Gasoline Demand ; Elasticity ; Structural Breaks |