Oil production responses to price changes: an empirical application of the competitive model to OPEC and non-OPEC countries

摘要: Abstract Falling oil prices over the last decade, accompanied by over-production some OPEC members and growth of non-OPEC supply, warrant further empirical investigation competitive model to ascertain production behavior. A supply function, based on a modification Griffin's model, is estimated using data from 1973–1997. The sample period, unlike Griffin's, however, includes phases price increase (1970s) decrease (1980s–1990s), thus providing better framework for examining behavior model. results do not support hypothesis; instead, negative significant elasticity obtained. This result offers partial target revenue theory. For most members, estimates OPEC's loss market share drop in oil-based energy should signal adjustments quantity world crude oil.