Effects of demography and labor supply on household gasoline demand in Sweden: a semiparametric approach
(English)Manuscript (preprint) (Other academic)
A typical gasoline demand model generally assumes that demand and labor supply are weakly separable. In this study, I relaxed the weak separability assumption by examining the effect of labor supply, measured by male and female working hours, on gasoline demand. I used a flexible semiparametric model that allowed for differences in response to income, age and labor supply, respectively. Using Swedish household survey data, the results indicated that the relationship between gasoline demand and income, age and labor supply were non-linear. The formal separability test rejects the null of separability between gasoline demand and labor supply. Furthermore, there was evidence indicating small bias in the estimates when one ignored labor supply in the model.
Derivatives, gasoline demand, labor supply and propensity score.
Research subject Economics
IdentifiersURN: urn:nbn:se:umu:diva-79700OAI: oai:DiVA.org:umu-79700DiVA: diva2:643990
FunderSwedish Energy Agency