Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83347
Authors: 
Havránek, Tomáš
Ondřej, Kokeš
Year of Publication: 
2013
Series/Report no.: 
IES Working Paper 02/2013
Abstract: 
In this paper we quantitatively synthesize empirical estimates of the income elasticity of gasoline demand reported in previous studies. The studies cover many countries and report a mean elasticity of 0.28 for the short run and 0.66 for the long run. We show, however, that these mean estimates are biased upwards because of publication bias - the tendency to suppress negative and insignificant estimates of the elasticity. Using mixed-effects multilevel meta-regression we filter out publication bias from the literature. Our results suggest that the income elasticity of gasoline demand is smaller than commonly thought: the corrected estimate is 0.1 for the short run and 0.46 for the long run.
Subjects: 
gasoline
income elasticity
publication bias
meta-analysis
JEL: 
C83
Q41
Document Type: 
Working Paper
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