Abstract

IBARRA SALAZAR, Jorge; SOTRES CERVANTES, Lida Karina  and  MORALES, Erika. Price Fluctuations and the Demand for Gasoline in the Mexican Northern Border. Frontera norte [online]. 2022, vol.34, e2287.  Epub Feb 10, 2023. ISSN 2594-0260.  https://doi.org/10.33679/rfn.v1i1.2287.

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.

Keywords : demand for gasoline; price regulation; Northern border region; Mexico.

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