Estimating Price Elasticity of Demand for Gasoline: Eviews Output
Source: Estimating Price Elasticity of Demand for Gasoline: A How-To Guide
http://the-idea-shop.com/article/196/estimating-price-elasticity-for-gasoline-a-how-to-guide
Regression with controls for seasonal effects:
Regression without controls for seasonal effects:
Estimating Price Elasticity of Demand for Gasoline: Eviews Output
Indirect Estimate of Price Elasticity:
𝑃
1.8018
𝜀=𝑏∗
= −1.0399 ∗
≅ −0.0479
𝑄
39.145
Regression with controls for seasonal effects:
Direct Estimate of Price Elasticity:
Regression with natural logs
& controls for seasonal effects: