1 option
A World Equilibrium Model of the Oil Market / Gideon Bornstein, Per Krusell, Sergio Rebelo.
- Format:
- Book
- Author/Creator:
- Bornstein, Gideon.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w23423.
- NBER working paper series no. w23423
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Lags, Costs, and Shocks
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2017.
- Summary:
- We use new, comprehensive micro data on oil fields to build and estimate a structural model of the oil industry embedded in a general equilibrium model of the world economy. In the model, firms that belong to OPEC act as a cartel. The remaining firms are a competitive fringe. We use the model to study the macroeconomic impact of the advent of fracking. Fracking weakens the OPEC cartel, leading to a large long-run decline in oil prices. Fracking also reduces the volatility of oil prices in the long run because fracking firms can respond more quickly to changes in oil demand.
- Notes:
- Print version record
- May 2017.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.