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Gasoline demand studies typically generate a single price and income elasticity for a country. It is however possible that these elasticities may differ among various socio-economic groups. At the same time, parametric gasoline demand models may not be flexible enough to capture the changes in price elasticities with different levels of income. This paper models US gasoline demand using more flexible semiparametric techniques, accommodating the possibility of differences in responses among households. The econometric model employs a non-parametric bivariate smoothing for price and income and a parametric representation of other explanatory variables. Possible heterogeneity in price and income elasticities is modelled through interacting price and income with demographic variables. Results show that price responses do vary with demographic variables such as income, multiple vehicle holding …