High Frequency Evidence on the Demand for Gasoline (original) (raw)

Econometrical Study in Gas Prices: G. Gautreaux

The research analysis will explore the conditions precipitating the recent surge in fuel pricing. Inflation along with overpriced fuel have been two of the most salient contemporary anomalies that are challenging the U.S. economy. Determining the origins of the price spikes is relevant today, not only because of its historical significance, but because strong scientific interpretations can minimize the political biases many of these issues have been relegated to. The objective of analysis was not necessarily to illustrate the complexities of all variables that influence the price of oil and gas but rather to understand the relationship between a relevant selection of data that best explain the recent spike in gas prices. The potential success of the research at hand is predicated on both the proper interpretation of econometric results and the application of economic intuition needed to make empirical judgements to determine whether the impact of fuel prices was correlated with a demand or supply shock. Thus, the many assertions that both precipitated and complemented the econometric analyses were based on assumptions from, not only empirical principles, but on a litany of prior research done on energy sector pricing in general. The interpretational data from this study should be applicable to both technical and non-technical audiences collectively. The general population of U.S. consumers have been one group effected by the spike in inflation and fuel prices. Additionally, policymakers, regardless of partisan pressure, should also seek to understand what’s causing the shock in energy pricing, because only in understanding the true results of the model, can they all work together in trying to counteract peak energy pricing by minimizing future occurrence.