We use Iranian Household Expenditure and Income Survey to analyze the dynamics of consumption of the households. We observe evidence of excess sensitivity in a cohort pseudo panel of Iranian households. Excess sensitivity, however, is absent for government employees who have better access to...

The income elasticity of consumption depends not only on the demand function but also on the characteristics of the supply function. If supply is not completely elastic, the income elasticity of consumption will be less than the income elasticity of demand, with the difference depending on the...

We show that including Google Search Volume (GSV) for bus and train, as proxies for the willingness of the consumers to use public transportation services, significantly improves the explanatory and predictive power of the estimated demand for the United States retail gasoline. We find that...

The income elasticity of consumption depends not only on the demand function but also on the characteristics of the supply function. If the supply of the underlying good (e.g., gasoline, natural gas, or housing) is not completely elastic, the income elasticity of equilibrium consumption will be...

In an open economy, the foreign exchange rate (FER) influences incentives for the cross-border shopping of gasoline as well as the opportunity cost of using vehicles and the relative attractiveness of home versus foreign travel. Using monthly regional-level data of gasoline consumption in Iran,...