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Using the recently developed Autoregressive Distributed Lag (ARDL) bound testing approach to co-integration, suggested by Pesaran et al. (Pesaran, M.H., Shin, Y., Smith, R.J. Bounds Testing Approaches to the Analysis of Level Relationships. Journal of Applied Econometrics 2001; 16(3) 289–326), we empirically analyzed the long-run relationship among the variables in the aggregate gasoline demand function...
Gasoline is one of the most important of the oil-derived products. Its importance is closely related to its participation in the value of imports of many countries and in a number of cases, it is one of the determinants of their balance of payment deficit, fiscal deficit and economic growth. As opposed to most nations, Brazil has had a gasoline substitute since 1985: alcohol. Many studies have tried...
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