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View Diary: Obama administration to release oil from strategic petroleum reserve (96 comments)

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  •  Sounds reasonable. (0+ / 0-)

    Of course, I thought it sounded reasonable that demand for gas would be more elastic!

    Anyway, here is an excerpt from a report I found.  I'm not sure if this was the report that I saw the article on recently or not but it says:

    We find that the short-run price elasticity of U.S. gasoline demand is significantly more inelastic today than in previous decades. This result is robust and consistent across several empirical models and functional forms. The observed change provides evidence of a structural change in the U.S. market for transportation fuel and may reflect shifts in land-use, social or vehicle characteristics during the past several decades.

    and:

    The short-run price elasticities differ considerably: and range from -0.034 to -0.077 during 2001 to 2006, versus -0.21 to -0.34 for 1975 to 1980.

    Anyway, this one report can be found at:

    http://www.econ.ucdavis.edu/...

    I did find another article that said that reports about elasticity are all over the map and so I guess we have to take it with a grain of salt.

    We cannot solve our problems with the same thinking we used when we created them. Albert Einstein

    by theotherside on Thu Jun 23, 2011 at 09:19:17 AM PDT

    [ Parent ]

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