Asymmetric price adjustments under ever-increasing costs: evidence from the retail gasoline market in Colombia

There is abundant empirical evidence showing that asymmetric price adjustments exist in a wide variety of markets. Prices tend to grow faster when costs rise relative to the rate at which prices drop when costs fall. The objective of this paper is to empirically test whether asymmetric price adjustm...

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Autores:: Hofstetter Gascón, Marc - 1973
Tovar Mora, Jorge Andrés

Tipo de recurso:: Work document

Fecha de publicación:: 2008

Institución:: Universidad de los Andes

Repositorio:: Séneca: repositorio Uniandes

Idioma:: eng

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spelling	Al consultar y hacer uso de este recurso, está aceptando las condiciones de uso establecidas por los autores.http://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccesshttp://purl.org/coar/access_right/c_abf2Hofstetter Gascón, Marc - 19733d0bcedf-a38a-4b26-b135-89ff51b72cf2600Tovar Mora, Jorge Andrés107505002018-09-27T16:50:25Z2018-09-27T16:50:25Z20081657-5334http://hdl.handle.net/1992/80791657-719110.57784/1992/8079instname:Universidad de los Andesreponame:Repositorio Institucional Sénecarepourl:https://repositorio.uniandes.edu.co/There is abundant empirical evidence showing that asymmetric price adjustments exist in a wide variety of markets. Prices tend to grow faster when costs rise relative to the rate at which prices drop when costs fall. The objective of this paper is to empirically test whether asymmetric price adjustments exist in a scenario where costs are increasing every period. The Colombian retail gasoline market offers an excellent case study due to a specific regulation, something discussed further in this paper. Our results suggest that when costs rise above the reference price -a government suggested retail price- retail prices tend to rise less relative to when costs grow below the reference price. Thus, asymmetry does exist.La existencia de ajuste asimétrico de precios se ha demostrado empíricamente en una gran variedad de mercados. Un incremento en los costos lleva a un crecimiento de los precios más rápido que la correspondiente caída cuando los costos caen. El objetivo de este trabajo es demostrar empíricamente que, aún en un escenario de costos exclusivamente crecientes, existe ajuste asimétrico de precios. Para tal efecto se explotan las particularidades del mercado minorista de gasolina en Colombia. Los resultados sugieren que un incremento de costos por encima de un precio de referencia (sugerido por el gobierno a los minoristas) conlleva a que los precios de venta al público crezcan menos con respecto al caso en que los costos crecen por debajo del precio de referencia. Por tanto, hay ajuste asimétrico de precios.18 páginasapplication/pdfengUniversidad de los Andes, Facultad de Economía, CEDEDocumentos CEDE No. 21 Octubre de 2008https://ideas.repec.org/p/col/000089/005856.htmlAsymmetric price adjustments under ever-increasing costs: evidence from the retail gasoline market in ColombiaAjuste asimétrico de precios bajo costos siempre crecientes: evidencia del mercado minorista de gasolina en ColombiaDocumento de trabajoinfo:eu-repo/semantics/workingPaperhttp://purl.org/coar/resource_type/c_8042http://purl.org/coar/version/c_970fb48d4fbd8a85Texthttps://purl.org/redcol/resource_type/WPAsymmetric price adjustmentsGasoline retail marketsSearchReference pricesPrecios regulados - ColombiaGasolina - PreciosComercio del combustible - ColombiaColombia - Política económicaD43, D82, D83Facultad de EconomíaPublicationORIGINALdcede2008-21.pdfdcede2008-21.pdfapplication/pdf784153https://repositorio.uniandes.edu.co/bitstreams/be0b021b-5ac3-4552-ad19-33a3b64826ec/downloadb128a15da3cede779cfae6fcfd1ed56cMD51TEXTdcede2008-21.pdf.txtdcede2008-21.pdf.txtExtracted texttext/plain51287https://repositorio.uniandes.edu.co/bitstreams/589d1236-0d19-4b47-aabf-241b4ab38f47/download24a2446988372e74bf15e3af0feb05b0MD54THUMBNAILdcede2008-21.pdf.jpgdcede2008-21.pdf.jpgIM Thumbnailimage/jpeg3758https://repositorio.uniandes.edu.co/bitstreams/ec5ad421-a37b-42ea-9979-5d4bdebd3cdb/download57353ad461a85df3f34e1e79e2409e88MD551992/8079oai:repositorio.uniandes.edu.co:1992/80792024-06-04 15:28:28.255http://creativecommons.org/licenses/by-nc-nd/4.0/open.accesshttps://repositorio.uniandes.edu.coRepositorio institucional Sénecaadminrepositorio@uniandes.edu.co
dc.title.none.fl_str_mv	Asymmetric price adjustments under ever-increasing costs: evidence from the retail gasoline market in Colombia
dc.title.alternative.none.fl_str_mv	Ajuste asimétrico de precios bajo costos siempre crecientes: evidencia del mercado minorista de gasolina en Colombia
title	Asymmetric price adjustments under ever-increasing costs: evidence from the retail gasoline market in Colombia
spellingShingle	Asymmetric price adjustments under ever-increasing costs: evidence from the retail gasoline market in Colombia Asymmetric price adjustments Gasoline retail markets Search Reference prices Precios regulados - Colombia Gasolina - Precios Comercio del combustible - Colombia Colombia - Política económica D43, D82, D83
title_short	Asymmetric price adjustments under ever-increasing costs: evidence from the retail gasoline market in Colombia
title_full	Asymmetric price adjustments under ever-increasing costs: evidence from the retail gasoline market in Colombia
title_fullStr	Asymmetric price adjustments under ever-increasing costs: evidence from the retail gasoline market in Colombia
title_full_unstemmed	Asymmetric price adjustments under ever-increasing costs: evidence from the retail gasoline market in Colombia
title_sort	Asymmetric price adjustments under ever-increasing costs: evidence from the retail gasoline market in Colombia
dc.creator.fl_str_mv	Hofstetter Gascón, Marc - 1973 Tovar Mora, Jorge Andrés
dc.contributor.author.none.fl_str_mv	Hofstetter Gascón, Marc - 1973 Tovar Mora, Jorge Andrés
dc.subject.keyword.none.fl_str_mv	Asymmetric price adjustments Gasoline retail markets Search Reference prices
topic	Asymmetric price adjustments Gasoline retail markets Search Reference prices Precios regulados - Colombia Gasolina - Precios Comercio del combustible - Colombia Colombia - Política económica D43, D82, D83
dc.subject.armarc.none.fl_str_mv	Precios regulados - Colombia Gasolina - Precios Comercio del combustible - Colombia Colombia - Política económica
dc.subject.jel.none.fl_str_mv	D43, D82, D83
description	There is abundant empirical evidence showing that asymmetric price adjustments exist in a wide variety of markets. Prices tend to grow faster when costs rise relative to the rate at which prices drop when costs fall. The objective of this paper is to empirically test whether asymmetric price adjustments exist in a scenario where costs are increasing every period. The Colombian retail gasoline market offers an excellent case study due to a specific regulation, something discussed further in this paper. Our results suggest that when costs rise above the reference price -a government suggested retail price- retail prices tend to rise less relative to when costs grow below the reference price. Thus, asymmetry does exist.
publishDate	2008
dc.date.issued.none.fl_str_mv	2008
dc.date.accessioned.none.fl_str_mv	2018-09-27T16:50:25Z
dc.date.available.none.fl_str_mv	2018-09-27T16:50:25Z
dc.type.spa.fl_str_mv	Documento de trabajo
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dc.identifier.doi.none.fl_str_mv	10.57784/1992/8079
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dc.relation.ispartofseries.none.fl_str_mv	Documentos CEDE No. 21 Octubre de 2008
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dc.format.extent.none.fl_str_mv	18 páginas
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dc.publisher.none.fl_str_mv	Universidad de los Andes, Facultad de Economía, CEDE
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Asymmetric price adjustments under ever-increasing costs: evidence from the retail gasoline market in Colombia

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