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JOURNAL OF APPLIED BUSINESS AND ECONOMICS

Short-run Driver Response to a Gasoline Price Spike:

Evidence from San Diego, CA

Author(s): Andrew Narwold, Dirk Yandell

Citation: Andrew Narwold, Dirk Yandell, (2013) "Short-run Driver Response to a Gasoline Price Spike:

Evidence from San Diego, CA," Journal of Applied Business and Economics, Vol. 15, Iss. 2, pp. 23-32

Article Type: Research paper

Publisher: North American Business Press

Abstract:

Drivers’ response to an unexpected gasoline price spike is examined using daily data from San Diego

County. Elasticities of demand are calculated for the very short run and are compared to prior short run

and long run elasticity estimates. Public transportation use is also examined and a cross-price elasticity

for bus travel is estimated. The immediate effects of a gasoline price spike are found to be close to zero,

but results are broadly consistent with prior short-run estimates after 10 days.