Price Asymmetry - Adjustment Models

[pbrownster]

Hi,

I am writing a project at university and I would like to examine pricing asymmetry in the UK retail petrol market. I have weekly data since 2003 on petrol prices and also crude oil prices. I would like to examine the hypothesis that retail petrol prices adjust more quickly to increases in crude oil prices than to decreases.

There is a lot of previous researh in this area and I have found two different ways in which i could examine this:

There is a partial adjustment mechanism with a quadratic term to differentiate the effects of upward and downward price shifts and also a full adjustment mechanism - They are both outlined in the following paper: http://uwacadweb.uwyo.edu/rgodby/Godby/ ... s/gas1.pdf

The help I need is in converting this technique so that I can apply it in Eviews.

Any advice on this matter would be much appreciated.

Thanks,
Paul