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Income and price elasticities of gasoline demand: An empirical analysis for Russia

The current study investigates the income and price impacts of gasoline demand for Russian case, employing different cointegration techniques to the data spanning from 2002Q1 to 2018Q1. The cointegration exercises confirmed the existence of the long-run relationship among the variables of interest. Estimation results showed that income and price has statistically significant impact on gasoline demand. The estimation results showed that 1% increase in income increases gasoline demand by 0.78%, while 1% price increase reduces the demand by 0.17%. The results of the study can be useful tool for policy-makers and investors in making relevant decisions in their service-business and investment related activities.


Citation

Mikayilov, J. I., Mukhtarov, S., & Mammadov, J. (2019). Income and price elasticities of gasoline demand: An empirical analysis for Russia. ASERC Journal of Socio-Economic Studies, 2(1), 3-12. DOI:10.30546/2663-7251.2.1.3