search query: @freeterm changes, price elasticity of demand, / total: 1
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| Author: | Hrovatin, N. |
| Title: | Cenovne elasticnosti povprasevanja po naftnih derivatih v Sloveniji in drzavah OECD |
| Journal: | IB revija
1995 : VOL. 29:4-5, p. 26-35 |
| Index terms: | |
| Freeterms: | Slovenia, OECD, fuels, oil, price, changes, price elasticity of demand, income, econometrics, models, income, international comparisons |
| Language: | slv |
| Abstract: | Demand for oil is a significant portion of aggregate demand in every economy.An increase in oil prices may increase costs in all sectors of the economy, which in turn may lead to greater inflation.This article analyses the potential effects of oil price changes on consumer demand, on consumer expenditures for oil products and accordingly, on the income of oil suppliers.For this purpose priceelasticities of demand for four oil products, gasoline, automotive diesel, light fuel oil and heavy fuel oil were estimated using an econometric model based on a partial adjustment hypothesis.Short-run and long-run demand for gasoline and automotive diesel is priceinelastic, while demand for light fuel oil does not depend on its price.On the other hand demand for heavy fuel oil is price - elastic. An increase in fuel oil prices would therefore lead to reduction in sellers' income, while an increase in the prices of the other three oil products would push the incomes of their sellers up.Both, short-run and long-run price elasticities of demand of the four oil products in Slovenia are similar to the elasticities in OECD countries. |
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