Advanced Search
MyIDEAS: Login to save this paper or follow this series

Oilgopoly: A General Equilibrium Model Of The Oil-Macroeconomy Nexus

Contents:

Author Info

  • Anton Nakov

    ()
    (Banco de España)

  • Galo Nuño

    ()
    (Banco de España)

Abstract

Saudi Arabia Is The Largest Player In The World Oil Market. It Maintains Ample Spare Capacity, Restricts Investment In Developing Reserves, And Its Output Is Negatively Correlated With Other Opec Producers. While This Behavior Does Not F T Into The Perfect Competition Paradigm, We Show That It Can Be Rationalized As That Of A Dominant Producer With Competitive Fringe. We Build A Quantitative General Equilibrium Model Along These Lines Which Is Capable Of Matching The Historical Volatility Of The Oil Price, Competitive And Non-Competitive Oil Output, And Of Generating The Observed Comovement Among The Oil Price, Oil Quantities, And U.S. Gdp. We Use Our Framework To Answer Questions On Which Available Models Are Silent: (1) What Are The Proximate Determinants Of The Oil Price And How Do They Vary Over The Cycle? (2) How Large Are Oil Prof Ts And What Losses Do They Imply For Oil-Importers? (3) What Do Different Fundamental Shocks Imply For The Comovement Of Oil Prices And Gdp? (4) What Are The General Equilibrium Effects Of Taxes On Oil Consumption Or Oil Production? We F Nd, In Particular, That The Existence Of An Oil Production Distortion Does Not Necessarily Justify An Oil Consumption Tax Different From Zero.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosTrabajo/09/Fic/dt0932e.pdf
File Function: First version, December 2009
Download Restriction: no

Bibliographic Info

Paper provided by Banco de Espa�a in its series Banco de Espa�a Working Papers with number 0932.

as in new window
Length: 30 pages
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:bde:wpaper:0932

Contact details of provider:
Email:
Web page: http://www.bde.es/
More information through EDIRC

Related research

Keywords: Oil Price; Oil Shocks; Dominant F Rm; Competitive Fringe; Pigovian Tax.;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bde:wpaper:0932. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mar�a Beiro. Electronic Dissemination of Information Unit. Research Department. Banco de Espa�a).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.