Relationship Between Crude Oil Price Controls and Refined Product Prices

摘要

This Analysis Memorandum is a response to a request from the Office of Policy and Evaluation for an independent evaluation of recent work done by Charles Phelps and Rodney Smith of the Rand Corporation. The Phelps and Smith proposition is that, because the effects of crude oil price controls are not fully reflected in refined product prices, the proposed crude oil equalization tax would have little or no effect on refined product prices, consumption, or total petroleum imports. This paper focuses on the arguments, assumptions, and implications of the ongoing discussion of the Phelps-Smith arguments. (ERA citation 04:052549)