Affiliation:
1. Tecnológico de Monterrey, Mexico
2. Investigadora independiente, Mexico
Abstract
The objective of the article is to estimate the price elasticity of the demand for gasoline in Mexico’s Northern border based on applying monthly data of Mexican regions from 1997 to 2015. The results reveal that the demand for gasoline at the border is less inelastic than inland. A database is provided that includes more observations and regional economic variables compared to previous studies. It is concluded that beyond the economic effects of gasoline-related tourism, the competition faced by gas stations on the Northern border influences the price elasticity of demand. This confirms the importance of gasoline tourism in this region of Mexico, as has been recognized by federal and municipal authorities.
Publisher
El Colegio de la Frontera Norte A.C.
Subject
General Earth and Planetary Sciences,General Engineering,General Environmental Science
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