Channel 12 News: Economics Professor Says Gas Price Hikes Could Result in Behavioral Changes
On April 28, 2011, Benjamin Passty, professor of economics at the UC College of Business and director of the Applied Economics Research Institute, was featured in a Channel 12 News story regarding the increasing gas prices.
Although economists predicted in 2008 that $6 a gallon is the price that would grind the economy to a halt, Passty says the number will most likely be lower this time around. I think well see a lot of behavioral changes begin even in the high $4s, says Passty. People are deeper in debt now than they were in 2008, and its possible that they will behave more desperately. Some people may even move closer to work and closer to the central cities.
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