The Transition to Uncontrolled Crude Oil Prices
- Creators
- Montgomery, W. David
Abstract
The purpose of this paper is to outline some initial steps toward the construction of an adequate dynamic analysis of oil price controls. A precise description of the goals and structure of current price controls is provided. These controls are characterized in a dynamic model that generates estimates of efficiency losses and wealth transfers. A simple dynamic model of oil production is also developed. The dynamic model leads to 2 conclusions: (1) in the short-term, continued controls are likely to lead to larger rates of domestic crude oil production than would exist if controls were removed; and (2) a multi-part pricing system that is neutral in its effects on production decisions in a static context is not neutral in a dynamic model.
Additional Information
Prepared for the National Bureau of Economic Research Conference on Public Regulation, Washington D.C., December 15-17, 1977. Published as Montgomery, David. Transition to uncontrolled crude oil prices. Conference paper No. 69. No. CONF-771290-1. National Bureau of Economic Research, Inc., Cambridge, MA (USA), 1980.Attached Files
Submitted - sswp186.pdf
Files
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Additional details
- Eprint ID
- 82620
- Resolver ID
- CaltechAUTHORS:20171024-133932030
- Created
-
2017-10-24Created from EPrint's datestamp field
- Updated
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2019-10-03Created from EPrint's last_modified field
- Caltech groups
- Social Science Working Papers
- Series Name
- Social Science Working Paper
- Series Volume or Issue Number
- 186