Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/165942 
Year of Publication: 
2015
Series/Report no.: 
Memorandum No. 21/2015
Publisher: 
University of Oslo, Department of Economics, Oslo
Abstract: 
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 estimated structural parameters have the expected sign and are significant. We find that OPEC exercised 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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