pass-through of the price of crude oil or the price of motor gasoline to U.S. inflation. Neither approach accounts for the … headline and core CPI inflation. Our analysis confirms that focusing on gasoline price shocks alone will underestimate the … gasoline used to operate a vehicle, electricity to light a home, or natural gas to heat a home. At other times, the cost of …

The conventional wisdom that inflation expectations respond to the level of the price of oil (or the price of gasoline … explained by a large increase in gasoline prices. However, on average, gasoline price shocks account for only 39% of the … support for the conventional wisdom. Using a new structural vector regression model, however, we demonstrate that gasoline …

The conventional wisdom that inflation expectations respond to the level of the price of oil (or the price of gasoline … explained by a large increase in gasoline prices. However, on average, gasoline price shocks account for only 39% of the … support for the conventional wisdom. Using a new structural vector regression model, however, we demonstrate that gasoline …

We propose a new instrument for estimating the price elasticity of gasoline demand that exploits systematic differences … across U.S. states in the pass-through of oil price shocks to retail gasoline prices. These differences, which are primarily … driven by variation in the cost of producing and distributing gasoline, create cross-sectional dispersion in gasoline price …

We propose a new instrument for estimating the price elasticity of gasoline demand that exploits systematic differences … across U.S. states in the pass-through of oil price shocks to retail gasoline prices. We show that these differences are … transportation infrastructure, refinery technology, and environmental regulations, creating cross-sectional gasoline price shocks in …