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Paper Information

Journal:   ENERGY ECONOMICS REVIEW   FALL 2008 , Volume 5 , Number 18; Page(s) 99 To 122.
 
Paper: 

Estimation Of Long Term Relationship Between Oil And Liquefied Natural Gas Prices Through The Error Correction Model

 
 
Author(s):  Mansour Kiaei E.*
 
* 
 
Abstract: 
The prevailing method of natural gas pricing assumes that it has a close relationship with crude oil price and follows its gyrations. Due to this, for many years the price of natural gas has been taken as a function of oil prices. Analysis of historical trends of oil and gas prices in regional markets also shows that these two variables are closely correlated. This study tries to explain the above relationship by using econometrics methods and examining the stability of this long term relationship. To this end, after referring to some common rules of thumb for estimating gas prices through a simple regression, the hypothesis that a simple regression is able to produce an efficient and unbiased estimate of gas prices is examined. The study concludes by offering an Error Correction Model that can produce efficient estimations of the long term relationship between oil and gas prices.     
 
Keyword(s): CRUDE OIL PRICE, LIQUEFIED NATURAL GAS, ERROR CORRECTION MODEL, RULE OF THUMB, ECONOMETRICS
 
 
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APA: Copy

MANSOUR KIAEI, E. (2008). ESTIMATION OF LONG TERM RELATIONSHIP BETWEEN OIL AND LIQUEFIED NATURAL GAS PRICES THROUGH THE ERROR CORRECTION MODEL. ENERGY ECONOMICS REVIEW, 5(18), 99-122. https://www.sid.ir/en/journal/ViewPaper.aspx?id=166704



Vancouver: Copy

MANSOUR KIAEI E.. ESTIMATION OF LONG TERM RELATIONSHIP BETWEEN OIL AND LIQUEFIED NATURAL GAS PRICES THROUGH THE ERROR CORRECTION MODEL. ENERGY ECONOMICS REVIEW. 2008 [cited 2022January23];5(18):99-122. Available from: https://www.sid.ir/en/journal/ViewPaper.aspx?id=166704



IEEE: Copy

MANSOUR KIAEI, E., 2008. ESTIMATION OF LONG TERM RELATIONSHIP BETWEEN OIL AND LIQUEFIED NATURAL GAS PRICES THROUGH THE ERROR CORRECTION MODEL. ENERGY ECONOMICS REVIEW, [online] 5(18), pp.99-122. Available: https://www.sid.ir/en/journal/ViewPaper.aspx?id=166704.



 
 
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