Investigating diesel market integration in France: Evidence from micro data

We use station-level daily price observations collected over a period of eight years to study the extent of diesel market integration in France. The empirical analysis starts off by examining the time-series properties of diesel price ratios, and then assesses how geographical separation and petrol...

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Detalles Bibliográficos
Autores: Cárdenas J., Gutiérrez Ramírez, Luis Hernando, Otero Cardona, Jesús Gilberto
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2017
País:Colombia
Institución:Universidad del Rosario
Repositorio:Repositorio EdocUR - U. Rosario
Idioma:inglés
OAI Identifier:oai:repository.urosario.edu.co:10336/23934
Acceso en línea:https://doi.org/10.1016/j.eneco.2017.03.004
https://repository.urosario.edu.co/handle/10336/23934
Access Level:acceso abierto
Palabra clave:Commerce
Gasoline
Time series analysis
Cointegration
Diesel prices
Empirical analysis
Exogenous shocks
Geographical separation
Market integration
Pair-wise
Petrol stations
Costs
Cointegration analysis
Diesel
Energy market
Price dynamics
Time series
France
Speed of adjustment
Descripción
Sumario:We use station-level daily price observations collected over a period of eight years to study the extent of diesel market integration in France. The empirical analysis starts off by examining the time-series properties of diesel price ratios, and then assesses how geographical separation and petrol station characteristics affect the speed of adjustment of prices to exogenous shocks. Our findings reveal that the great majority of diesel price ratios maintain stable long run relationships. We also find that while price ratios take longer to adjust for pairs of petrol stations that are farther apart, adjustment is quicker when pairs of petrol stations provide the same range of services, and when they belong to the same owner. © 2017 Elsevier B.V.