Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/210052 
Year of Publication: 
2014
Series/Report no.: 
Working Paper No. 2014/03
Publisher: 
Norges Bank, Oslo
Abstract: 
In this paper we estimate a dominant firm-competitive fringe model for the crude oil market using quarterly data on oil prices for the 1986-2009 period. All the estimated structural parameters have the expected sign and are significant at standard test levels. We find that OPEC exercised its market power during the sample period. Counterfactual experiments indicate that world GDP is the main driver of long-run oil prices, however, supply (depletion) factors have become more important in recent years.
Subjects: 
OPEC
Lerner index
oil
dominant firm
market power
oil demand elasticity
oil supply elasticity
JEL: 
L13
L22
Q31
Persistent Identifier of the first edition: 
ISBN: 
978-82-7553-788-9
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper
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