Golombek, Rolf; Irarrazabal, Alfonso; Ma, Lin - 2014
In this paper we estimate a dominant firm-competitive fringe model for the crude oil market using quarterly data on oil … standard test levels. We find that OPEC exercised its 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 …