Speaker: Heng Ju (Associate Professor, Shanghai University of Finance and Economics)

Title：Asymmetric Responses to Oil Cost Shocks and Price Regulation in Chinese Gasoline Wholesale Markets （coauthored with Qingtian Zhou)

Abstract: Based on the long-run equilibrium relationships among crude oil, wholesale gasoline and regulated retail gasoline prices, we employ an asymmetric error correction model to study the dynamic patterns of wholesale gasoline prices in 18 Chinese provinces between 2009 and 2014. We examine two kinds of asymmetry in adjustment speeds: one responding to (upstream) crude oil price shocks and one to the changes in (downstream) retail prices. We find that asymmetry exists in 15 provinces for at least one kind.