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Did the price control achieve its goal?

Author

Listed:
  • Myeong hwan Kim

    (Indiana University-Purdue University Fort Wayne)

  • Kwang Woo Park

    (Minnesota State University, Mankato)

Abstract

As a result of the 1973 oil embargo and the subsequent increase of world oil prices, the oil price control program took place in order to reduce the impact of sharply higher external oil prices. In this regard, since the domestic price for oil was below that of the world market, the price control effort seemed to be regarded as successful. Did the oil price control achieve its goal? Maybe not. This study shows that the price control for the domestically produced crude oil was ineffective and enhanced the ability of external suppliers to manipulate prices.

Suggested Citation

  • Myeong hwan Kim & Kwang Woo Park, 2009. "Did the price control achieve its goal?," Economics Bulletin, AccessEcon, vol. 29(2), pages 1432-1442.
    • Handle: RePEc:ebl:ecbull:eb-09-00028
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I2-P86.pdf
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    References listed on IDEAS

    as
    1. Dermot Gately & Hiliard G. Huntington, 2002. "The Asymmetric Effects of Changes in Price and Income on Energy and Oil Demand," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 19-55.
    2. Joshua D. Angrist & Kathryn Graddy & Guido W. Imbens, 2000. "The Interpretation of Instrumental Variables Estimators in Simultaneous Equations Models with an Application to the Demand for Fish," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(3), pages 499-527.
    3. Hans H. Helbling & James E. Turley, 1975. "Oil price controls: a counterproductive effort," Review, Federal Reserve Bank of St. Louis, vol. 57(Nov), pages 2-6.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Oil Price Price Control;

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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