Pump Prices and Oil Prices: A Tale of Two Directions

It has been argued that retail gasoline prices adjust more quickly to crude oil price increases than to price decreases. We investigate this issue using the statewide data on weekly retail gasoline prices in the United States between January 2000 and June 2007. Our analysis does not confirm the prediction that gasoline prices adjust more quickly to price increases in crude oil prices. On the contrary, the results suggest that in some geographic areas gasoline prices could change faster when crude oil prices decrease. These findings suggest that a national or a one size fits all energy policy for the United States may be misguided.

Economics of Crime: Panel Data Analysis of Bank Robbery in the United States

This paper examines the determinants of bank robbery in the United States using a rational choice model. Panel data estimation techniques were used to analyze the data for all 50 states and the District of Columbia from 1990 through 2000. A random-effects model emerged as the most appropriate estimating model for costs and benefits of bank robbery. Among the significant determinants of the rate of bank robbery were the unemployment rate and amount of loot. The findings suggest that the rational choice model is a suitable framework for examining bank robbery. However, if we are to draw useful policy conclusions, better data are needed to accurately measure the opportunity costs of bank robbery. (JEL C23, K42)