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WKU Center for Applied Economics Studies Gasoline Prices

By Dan Modlin

Bowling Green, KY – In addition to the documented relationship between oil and gasoline prices, Dr. Brian Goff says a degree of "momentum" plays a role in what we pay at the gas pump.

The Co-Director of the WKU Center for Applied Economics says a technical consideration of gasoline movements over time shows that "momentum" tends to keep prices moving upward for a month or two after they start to increase. Likewise, he says momentum can keep prices moving lower for a month or two after they start to decrease. He says existing inventories of gasoline and crude oil also influence the current price at gasoline stations. The new study can be found on-line at
wkuappliedeconomics.org