Estimating the supply and demand of gasoline using tax data

  title={Estimating the supply and demand of gasoline using tax data},
  author={David D. Coyle and Jason Matthew DeBacker and Richard Prisinzano},
We estimate supply and demand functions for the U.S. gasoline market using information from excise tax returns provided by the IRS for the period 1990–2009. We find price and income elasticities of demand similar to those found using EIA data. We find a price elasticity of supply of 0.29, which differs from the common assumption of a perfectly inelastic short-run supply curve. By using a novel data source, the analysis provides a robustness check of aggregate studies of gasoline demand and a… CONTINUE READING