Short-and long-run elasticities of gasoline demand in India; An empirical analysis using cointegration techniques

摘要

In developing countries like India, consumption of petroleum products has implications on its balance of payments, economic growth and fiscal deficit. Gasolineis one of the prime petroleum products. In this paper, the relationship between gasoline demand, national income and price of gasoline is empirically examined using cointegration and error correc- tion techniques. The time frame of the analysis is from 1972-1973 to 1993-1994.