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May 05, 2008
A simple restatement of the gas tax holiday question
I posted this as a comment at Angry Bear.
The real question is this: How much would gas prices need to fall in order to induce consumers to buy up whatever additional production would be optimally squeezed out of the refineries if the gas tax temporarily went away?
When you think about it that way for a little bit, it becomes easier to see that the answer is probably greater than zero, but not much.
Posted by William Polley at May 5, 2008 06:53 PM
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