Document Type

Thesis - Open Access

Award Date

1975

Degree Name

Master of Science (MS)

Department

Economics

Abstract

The purpose of this study is to estimate the price elasticity of demand in the gasoline industry using an excess demand model as developed by McCallum and applying two stage least squares as a means of estimation.

B.T. McCallum in his article "Competitive Price Adjustments: An Empirical Study" formulates models of competitive price adjustments and explores the adequacy of each for empirical use . This excess demand model as developed by McCallum will be used as the basic model in this discussion. It will be reduced to a reduced form equation and tw6 stage least squares will be applied resulting in an estimator for price (p). This will be substituted into the demand equation from which the price elasticity will be computed for each month and for the whole period by means of logarithms.

Library of Congress Subject Headings

Gasoline -- Prices -- United States Gasoline supply

Format

application/pdf

Number of Pages

48

Publisher

South Dakota State University

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