Specification and estimation of multi-market disequilibrium model: An application to the US auto and gasoline markets

Thesis/Dissertation · Fri Jan 01 00:00:00 EST 1988

OSTI ID:5237519

Mustafa, M

This dissertation presents a tractable estimation procedures for a multi-market disequilibrium model and applies to the US automobile and gasoline markets. The model of the two interrelated markets is a desegregated disequilibrium model that has a system of interrelated demand equations in one market. This is the first specification in either the theoretical and empirical literature of multi-market disequilibrium with lagged endogenous variables. Using the minimum-distance method, it is possible to estimate far richer models than is computationally feasible with maximum likelihood. The estimated model reveals a spill-over effect from gasoline market disequilibrium into automobile market: the evidence of a spill-over from the automobile into the gasoline market is weaker. When a disequilibrium framework is used, the estimates of elasticities in automobile and gasoline markets are more efficient and are significantly different from the estimates obtained from an equilibrium model.

• Research Organization: Wayne State Univ., Detroit, MI (USA)
• OSTI ID: 5237519
• Resource Relation: Other Information: Thesis (Ph. D.)
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
29 ENERGY PLANNING
POLICY AND ECONOMY
AUTOMOTIVE INDUSTRY
MARKETING RESEARCH
GASOLINE
ECONOMETRICS
ECONOMIC ELASTICITY
MATHEMATICAL MODELS
USA
ECONOMICS
FUELS
INDUSTRY
LIQUID FUELS
NORTH AMERICA
PETROLEUM PRODUCTS
020700* - Petroleum- Economics
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