The asymmetric effects of crude oil prices and exchange rates on diesel prices for 27 European countries

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buir.contributor.authorBerument, M. Hakan
buir.contributor.orcidBerument, M. Hakan|0000-0003-2276-4741
dc.citation.epage25en_US
dc.citation.spage1en_US
dc.contributor.authorYuksel Haliloglu, E.
dc.contributor.authorBerument, M. Hakan
dc.date.accessioned2022-03-01T10:52:29Z
dc.date.available2022-03-01T10:52:29Z
dc.date.issued2021-04-16
dc.departmentDepartment of Economicsen_US
dc.description.abstractMany studies have examined the asymmetric effect of US dollar-denominated crude oil prices on petroleum product prices. The ‘rockets and feathers’ argument suggests that a crude price increase raises petroleum product prices more than a corresponding decrease in crude prices lowers product prices. However, for the countries that do not use the US dollar as a medium of exchange, petroleum product prices are also affected by the exchange rates. This paper analysed the asymmetric effects of both US dollar-denominated crude oil prices and exchange rates on local currency-denominated diesel prices for 27 European countries in the short run as well as long run. The overall empirical evidence suggests that, in the short run, diesel prices react more to crude oil price increases than to a decrease, parallel to the ‘rockets and feathers’ argument. However, contrary to that argument, the long-run adjustment is the opposite. As for exchange rate shocks, again the ‘rockets and feathers’ argument holds and diesel prices respond more to exchange rate depreciation than appreciation in the short and long run.en_US
dc.description.provenanceSubmitted by Dilan Ayverdi (dilan.ayverdi@bilkent.edu.tr) on 2022-03-01T10:52:29Z No. of bitstreams: 1 The_asymmetric_effects_of_crude_oil_prices_and_exchange_rates_on_diesel_prices_for_27_European_countries.pdf: 1093631 bytes, checksum: cbad3d0ed711a19e3b59951390dcdfff (MD5)en
dc.description.provenanceMade available in DSpace on 2022-03-01T10:52:29Z (GMT). No. of bitstreams: 1 The_asymmetric_effects_of_crude_oil_prices_and_exchange_rates_on_diesel_prices_for_27_European_countries.pdf: 1093631 bytes, checksum: cbad3d0ed711a19e3b59951390dcdfff (MD5) Previous issue date: 2021-04-16en
dc.identifier.doi10.1177/0972150921999035en_US
dc.identifier.eissn0973-0664
dc.identifier.issn0972-1509
dc.identifier.urihttp://hdl.handle.net/11693/77650
dc.language.isoEnglishen_US
dc.publisherSage Publications India Pvt. Ltd.en_US
dc.relation.isversionofhttps://doi.org/10.1177/0972150921999035en_US
dc.source.titleGlobal Business Reviewen_US
dc.subjectRockets and feathersen_US
dc.subjectAsymmetric effecten_US
dc.subjectCrude oil priceen_US
dc.subjectDiesel priceen_US
dc.subjectExchange rateen_US
dc.titleThe asymmetric effects of crude oil prices and exchange rates on diesel prices for 27 European countriesen_US
dc.typeArticleen_US

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