Taxation and the asymmetric adjustment of selected retail energy prices in the UK

Greenwood‐Nimmo, Matthew; Shin, Yongcheol

doi:10.1016/j.econlet.2013.09.020

Cited by 87 publications

(65 citation statements)

References 14 publications

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“…This observation is consistent with Borenstein et al (1997, pp. 332-334) and We followed the general-to-specific approach recommended by Shin et al (2013) and selected the final ARDL specification for linear and nonlinear (asymmetric) versions. The estimated specification is chosen by starting with max p=13 max q=13 and selecting the optimal lag length using Akaike info criterion.…”

Section: Resultsmentioning

confidence: 99%

“…The NARDL approach we applied was used in a context of APT research previously, e.g. Atil et al (2014), Bagnai & Ospina (2015), Chattopadhyay & Mitra (2015), Greenwood-Nimmo & Shin (2013), with a very promising results.…”

Section: Literature Reviewmentioning

confidence: 99%

“…It allows for asymmetries in both the short-and long-run parameters. A one-step estimation of the complementary ECM is likely to improve the model performance for small samples, particularly in terms of the power of the cointegration tests (Shin et al, 2013). The ability to simultaneously estimate both long and short-run asymmetries is a very flexible approach and provides straightforward means for testing both long and short-run symmetry restrictions.…”

Section: General Model Specificationmentioning

confidence: 99%

“…This paper definitely fits into the stream of competition studies on strategic behavior of the players in the oligopolistic industries and markets with an adequate policy implications. This study, however, differs significantly from other relevant works in this field, because: -it is the first approach focusing on a comparative examination of the APT for the individual market players; -the analysis concerns not only the usual pass-through from crude oil price to product prices, but we also included the pass-through of domestic currency exchange rate fluctuations, as in Bagnai & Ospina (2015) or Greenwood-Nimmo & Shin (2013), and other possible wholesale price determinants (a spot price of a reference product and prices of futures contracts), as implied by the Import Parity Pricing (the IPP) schema of the wholesale price determination. There are some qualitative evidences that IPP schema for establishing a wholesale price is presumably used by the two major players in the Polish market, PKN Orlen and LOTOS (Bejger, 2015a, pp.…”

Section: Introductionmentioning

confidence: 99%

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Wholesale fuel price adjustment in Poland: examination of competitive performance

Bejger

2019

EiP

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Motivation: Import parity pricing, potentially provoking parallel pricing, and asymmetric price transmission are both considered as the factors that can distort competitiveness and foster collusive behavior on the fuel markets. Aim: The study encompass an analysis of usual 'rocket and feathers' reactions in response to common drivers of the gasoline wholesale price and comparative analysis of individual players' pricing paths in order to examine competitive performance of the market. To account for an implied IPP pricing mechanism, a set of common wholesale price determinants was expanded. Results: We revealed a significant short-run asymmetries in a transmission of all downstream price determinants and shown that the foreign exchange rate is a main driver underlying a positive asymmetry in the wholesale prices' paths. We compared dynamic price adjustment paths for the major players and revealed the common patterns. That suggest a strong possibility of parallel pricing.

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Section: Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: General Model Specificationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Wholesale fuel price adjustment in Poland: examination of competitive performance

Bejger

2019

EiP

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“…However, the disaggregation of the data allowed the study to show that the asymmetry is not a national problem [17]. Some other studies show that there is no evidence of price asymmetry [18][19][20][21][22]. On the same topic Venditti [23] found that there is some compelling evidence of asymmetries in the adjustment of retail gasoline prices for the U.S. but such evidence appears to be quite mixed for the Euro area.…”

Section: Literature Reviewmentioning

confidence: 87%

Estimating the Efficiency and Impacts of Petroleum Product Pricing Reforms in China

2018

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Abstract:The efficiency and effects analysis of a new pricing mechanism would have significant policy implications for the further design of a pricing mechanism in an emerging market. Unlike most of the existing literature, which focuses on the impacts to the macro-economy, this paper firstly uses an econometrics model to discuss the efficiency of the new pricing mechanism, and then establishes an augmented Phillips curve to estimate the impact of pricing reform on inflation in China. The results show that: (1) the new pricing mechanism would strengthen the linkage between Chinese oil prices and international oil prices; (2) oil price adjustments are still inadequate in China. (3) The lag in inflation is the most important factor that affects inflation, while the impact of the Chinese government's price adjustments on inflation is limited and insignificant. In order to improve the efficiency of the petroleum products pricing mechanism and shorten lags, government should shorten the adjustment period and diminish the fluctuation threshold.

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Asymmetric price transmission in perishable crops value chain: A NARDL approach

Sharma,

Meena,

Anwer

2024

Agribusiness

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Policymakers and economists envisage effective price transmission across markets or stakeholders in supply chains as a vital contributor to market efficiency. The paper explores the vertical price transmission in the perishables supply chain in India using weekly data on farm, wholesale and retail prices collected from main production and consumption markets. We estimate the asymmetries in price transmission using the nonlinear autoregressive distributed lags model and found the asymmetry in both magnitude and speed in the case of wholesale–retail chain of Onion and Potato, asymmetry in magnitude in wholesale–retail chain of Tomato, and asymmetry in speed in farm–wholesale chain of Potato. The results of asymmetric coefficient, long‐run elasticity of price transmission, speed of adjustment and implied half‐life of disequilibrium indicated that farm–wholesale chain is more efficient than wholesale–retail chain. Further, market chains of Onion and Tomato are more efficient than Potato chains. The magnitude of the adjustment was found to be larger for the long‐run positive shock in wholesale–retail market chain of Onion, Potato and Tomato, and it concluded that retailers enjoy an advantage over wholesalers as well as farmers. We draw interesting policy considerations for the perishables sector [EconLit Citations: Q11, Q13, C32].

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Taxation and the asymmetric adjustment of selected retail energy prices in the UK

Cited by 87 publications

References 14 publications

Wholesale fuel price adjustment in Poland: examination of competitive performance

Wholesale fuel price adjustment in Poland: examination of competitive performance

Estimating the Efficiency and Impacts of Petroleum Product Pricing Reforms in China

Asymmetric price transmission in perishable crops value chain: A NARDL approach

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