Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89724
Authors: 
Golombek, Rolf
Irarrazabal, Alfonso A.
Ma, Lin
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4512
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: 
oil
dominant firm
market power
OPEC
Lerner index
oil demand elasticity
oil supply elasticity
JEL: 
L13
L22
Q31
Document Type: 
Working Paper

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