Working Paper: NBER ID: w26091
Authors: Christopher Severen; Arthur Van Benthem
Abstract: Formative experiences shape behavior for decades. We document a striking feature about those who came of driving age during the oil crises of the 1970s: they drive less in the year 2000. The effect is not specific to these cohorts; price variation over time and across states indicates that gasoline price changes between ages 15–18 generally shift later-life travel behavior. Effects are not explained by recessions, income, or costly skill acquisition and are inconsistent with recency bias, mental plasticity and standard habit-formation models. Instead, they likely reflect formation of preferences for driving or persistent changes in its perceived cost.
Keywords: No keywords provided
JEL Codes: D12; D90; L91; Q41; R41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Positive shock to gasoline prices during ages 15-18 (N72) | Less likely to drive to work later in life (J26) |
| Positive shock to gasoline prices during ages 15-18 (N72) | Drive substantially less (3482 fewer miles annually) (R48) |
| Positive shock to gasoline prices during ages 15-18 (N72) | Less likely to own fuel-inefficient vehicles (R48) |
| Gasoline price shocks during formative years (N72) | Shift in preferences or perceptions of the cost of driving (R48) |
| Gasoline price movements between ages 15 and 18 (N72) | Shape later-life behavior (D15) |