An Attempt to Explain the Pricing of OPEC Exports

摘要

A macroeconomic model which can be used to measure the macroeconomic costs of an oil import supply description is being developed. The model allows some insight into the benefits (or costs) of imposing an oil import tariff in the event of a disruption. Most of the impact of a disruption is on the price of the oil. An OPEC supply function is described which can determine the extent of the price rise resulting from a disruption. (ERA citation 06:013383)