Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2008:2: New York mark-ups on petroleum products

Szymon Wlaslowski (), Jane Binner (), Monica Guiletti (), Nathan Joseph () and Birger Nilsson ()
Additional contact information
Szymon Wlaslowski: Aston Business School, Postal: Aston Business School, Aston University, Aston Triangle, Birmingham B4 7ET, UK
Jane Binner: Sheffield University
Monica Guiletti: Aston Business School, Postal: Aston Business School, Aston University, Aston Triangle, Birmingham B4 7ET, UK
Nathan Joseph: Aston Business School, Postal: ston Business School, Aston University, Aston Triangle, Birmingham B4 7ET, UK
Birger Nilsson: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden

Abstract: This paper analyzes rigidities in the behavior of mark-up on petroleum products in the New York area using a new set of high-frequency data. We use a methodology that accounts both for deterministic and stochastic nature of petrol prices. The results indicate that the adjustment to the long run equilibrium mark-up is non-linear with adjustment speeds that are equal across regimes for two out of the three series analyzed. For one of the series the adjustment is beneficial for end consumers as we find that prices fall faster than they rise.

Keywords: asymmetric price transmission; petroleum; SETAR model; regime switching model

JEL-codes: C52; D40; L11; Q40

35 pages, August 6, 2007

Full text files

WP08_2.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to David Edgerton ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-02-06 14:12:31.