One more for the road : Reconsidering whether OECD gasoline income and price elasticities have changed over time

This paper determines whether gasoline income and price elasticities have changed. To do so, the paper considers a balanced, but particularly long (1960-2017) panel of 17 OECD countries. In addition, it employs two methods that vary to the extent that they allow for cross-sectional and time heterogeneity: rolling window, mean group regressions and time varying estimates. We find evidence to support the idea that gasoline consumption became less responsive to price as prices fell from their heights of the early 1980s. While income elasticities are not constant over time, they do not deviate much from time-invariant estimates. Similarly, price elasticities have been more or less stable for at least the past two decades