발전기금
[경제학과] 9월 26일 BK 목요세미나 안내
- 진하은
- 2024-09-24
이번 주 9월 26일 목요일에 진행되는 목요세미나 안내 드립니다.
- 주제: Uncertainty and Cost Pass-Through: Evidence from Retail Fuel Market
- Abstract: This study examines how retail gas stations adjust their pricing strategies in response to production costs under varying uncertainty. Using a local projection model on weekly fuel data, we obtained the following findings. Firstly, retail gas stations have reduced cost pass-through during periods of heightened market uncertainty. Specifically, during periods of elevated uncertainty, the pass-through rate is approximately one-third of that observed during stable conditions. Secondly, in periods of low uncertainty, retail gas stations pass on a greater proportion of cost decreases and a smaller proportion of cost increases, representing a previously undocumented finding. In contrast, high uncertainty results in retail gas stations passing on fewer cost decreases and more cost increases, reflecting the ’rockets and feathers’ phenomenon. Furthermore, competition enhances cost pass-through, with nearby competitors having a more significant impact. However, higher uncertainty diminishes the effect of competition on pass-through. Finally, a higher demand elasticity results in a lower pass-through rate.