This paper examines if the long-run relationship between retail and wholesale petrol prices is subject to adjustment asymmetric behaviour using weekly Australian data (2007–2012) across 111 locations. A short-run dynamic model is specified in which three feedback coefficients capture three...

This paper examines the dynamic relationship between the price of crude oil and the CPI energy price sub-index in Canada and the U.S. using a Markov-regime switching model and the Bai–Perron sequential method. Since these two series are cointegrated during the sample period (January...