The effects of gasoline prices on the U.S. business cycles are investigated. In order to distinguish between gasoline … data on transport costs and gasoline prices. The results show that although standard shocks in the literature (e … supply and gasoline demand shocks, the price of gasoline is endogenously determined through a transportation sector that uses …

We investigate how oil supply shocks are transmitted to U.S. economic activity, consumer prices, and interest rates … consumer prices. …