Thesis - Open Access
Master of Science (MS)
Department / School
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
Number of Pages
South Dakota State University
Hepfinger, Bennie Ray, "An Estimation of the Price Elasticity of Deman in the Gasoline Industry" (1975). Electronic Theses and Dissertations. 5156.