This paper uses a random coefficient regression approach to estimate the demand for gasoline by pooling cross-sectional (state level) and time series data. The analysis proceeds by estimating two alternative models, namely a stock adjustment model and a flow adjustment model. The two models are...

The research shows that an energy tax could be used to finance a national health care program. The tax would generate sufficient revenues for the plan, reduce imports, and reduce pollution. The tax could be altered to decrease its regressive nature and still maintain sufficient revenues.