Journal article
The dynamic stability of OPEC's oil price mechanism
Energy economics, v 14(1), pp 65-71
1992
Abstract
This paper examines OPEC's long-lived mechanism which targets the oil price and adjusts the quality ceiling to meet the target. The stability of this controversial mechanism is compared to that of two alternatives: one requires quantity control without any price targeting and the other is a synthesis of quantity control and the OPEC mechanisms. All three mechanisms passed the stability test and the two alternatives give rise to some interesting policy implications. Practically considerations which involve the availability of specific information make OPEC's mechanism the most appropriate in terms of achieved targeted revenues. The paper also offers a convergence strategy that speeds up the achievement of targeted revenues under OPEC's current mechanism.
Metrics
Details
- Title
- The dynamic stability of OPEC's oil price mechanism
- Creators
- Shawkat Hammoudeh - Drexel UniversityVibhas Madan - Drexel University
- Publication Details
- Energy economics, v 14(1), pp 65-71
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics); Bennett S. LeBow College of Business
- Web of Science ID
- WOS:A1992HC59900008
- Scopus ID
- 2-s2.0-0026470958
- Other Identifier
- 991019174747804721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Web of Science research areas
- Economics