Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302068 
Year of Publication: 
2023
Citation: 
[Journal:] ENTRENOVA - ENTerprise REsearch InNOVAtion [ISSN:] 2706-4735 [Volume:] 9 [Issue:] 1 [Year:] 2023 [Pages:] 51-59
Publisher: 
IRENET - Society for Advancing Innovation and Research in Economy, Zagreb
Abstract: 
According to many studies, the transmission of oil prices to retail fuel prices is asymmetric. Fuel prices react faster if oil prices rise and more slowly if oil prices fall. We use the simple and dynamic asymmetry models, error correction models, threshold autoregressive cointegration, and an approach based on the adjustment cost function in the linear-exponential form to verify the hypothesis of asymmetric reactions of gasoline and diesel prices in Croatia. The analysis uses a weekly time series of Croatian fuel prices obtained from the European Commission Weekly Oil Bulletin and BRENT oil prices from the US Energy Information Administration. Different standard econometric procedures lead to different results. Nevertheless, the approach based on the linear-exponential lost function confirmed the price asymmetries in the Croatian market.
Subjects: 
asymmetry
retail gasoline prices
error correction model
threshold autoregressive cointegration
linear-exponential adjustment cost function
generalised method of moments
Croatia
JEL: 
C26
C51
Q41
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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