This article is concerned with disequilibrium regime switching model to capture different regimes in the US gasoline … markets. The purpose is to illustrate potential regimes in gasoline market. Following a suggestion in Hunter and Tabaghdehi … (Cointegration and US regional gasoline prices: testing market efficiency from the stationarity of price proportions. Brunel …

Many empirical studies state that retail gasoline and diesel prices react more quickly when the crude oil price rises … gasoline and diesel reaction functions. The correspondent model is estimated with the system's generalised method of moments …. The model allows us to compute average one-gallon gasoline and diesel price biases from the increase in oil by one dollar …