Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/95945
Authors: 
Ponce, Micaela
Neumann, Anne
Year of Publication: 
2014
Series/Report no.: 
DIW Discussion Papers 1372
Abstract: 
In this paper we investigate natural gas producer's reactions to changes in market prices. We estimate price elasticities of aggregated supply in the most competitive market for natural gas: the United States. Using monthly time series data form 1987 to 2012 our analysis is based on an Autoregressive Distributed Lag (ARDL) Bound Cointegration approach to obtain short and long-run elasticities of natural gas supply. Results suggest that natural gas producers in a competitive market are not able to react to prices in the very short-run but respond inelastic in the long-run. These findings are not only of great value for policy makers but also for gas market modelers.
Subjects: 
elasticity of supply
natural gas
ARDL
ECM
competitive markets
JEL: 
L95
Q41
C22
C32
Document Type: 
Working Paper

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