A second look at sticky wholesale gasoline prices

Abstract

This paper describes a generally successful attempt to replicate results of Davis and Hamilton [3], who look into the issue of price stickiness and test three dominant models of price rigidity using data on wholesale gasoline prices in Philadelphia. There are some minor discrepancies present between the duplicated results and the ones reported in the original paper, which are mainly attributed to rounding errors and the use of different statistical software in the replication. Access to the authors' original code also allowed me to uncover several minor errors and inconsistencies in Davis and Hamilton [3].