Elasticity of demand for relative petroleum inventory in the short run.: An article from: Atlantic Economic Journal

This digital document is an article from Atlantic Economic Journal, published by Atlantic Economic Society on March 1, 2003. The length of the article is 7005 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: To better understand petroleum markets, the authors established the importance of the deviation of inventory levels away from a normal level, where the normal level is comprised of seasonal movement and a general trend. Since supply and demand for petroleum are less elastic to price in the short run than is inventory, it is this deviation or relative inventory level that plays the role of absorbing unexpected shifts in demand and supply. They demonstrated theoretically that the demand for relative inventory must be negatively related to price. They estimated the relative inventory levels and associated short-run price elasticity for several OECD countries and groups of countries, and found that short-run price elasticity of demand for relative inventory is negative and statistically significant, supporting the theoretical arguments. (JEL Q40)

Citation Details
Title: Elasticity of demand for relative petroleum inventory in the short run.
Author: Michael Ye
Publication:Atlantic Economic Journal (Refereed)
Date: March 1, 2003
Publisher: Atlantic Economic Society
Volume: 31 Issue: 1 Page: 87(16)

Distributed by Thomson Gale