(Mis)Allocation, Market Power, and Global Oil Extraction
Publication
, Journal Article
Asker, J; Collard-Wexler, A; De Loecker, J
Published in: American Economic Review
April 1, 2019
We propose an approach to measuring the misallocation of production in a market that compares actual industry cost curves to undistorted (counterfactual) supply curves. As compared to traditional, TFPR- based, misallocation measures, this approach leverages cost data, such that results are readily mapped to welfare metrics. As an application, we analyze global crude oil extraction and quantify the extent of misallocation therein, together with the proportion attributable to market power. From 1970 to 2014, we find substantial misallocation, in the order of US$744 billion, 14.1 percent to 21.9 percent of which is attributable to market power.
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Published In
American Economic Review
DOI
EISSN
1944-7981
ISSN
0002-8282
Publication Date
April 1, 2019
Volume
109
Issue
4
Start / End Page
1568 / 1615
Related Subject Headings
- Economics
- 38 Economics
- 35 Commerce, management, tourism and services
- 15 Commerce, Management, Tourism and Services
- 14 Economics
Citation
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Asker, J., Collard-Wexler, A., & De Loecker, J. (2019). (Mis)Allocation, Market Power, and Global Oil Extraction. American Economic Review, 109(4), 1568–1615. https://doi.org/10.1257/aer.20171438
Asker, J., A. Collard-Wexler, and J. De Loecker. “(Mis)Allocation, Market Power, and Global Oil Extraction.” American Economic Review 109, no. 4 (April 1, 2019): 1568–1615. https://doi.org/10.1257/aer.20171438.
Asker J, Collard-Wexler A, De Loecker J. (Mis)Allocation, Market Power, and Global Oil Extraction. American Economic Review. 2019 Apr 1;109(4):1568–615.
Asker, J., et al. “(Mis)Allocation, Market Power, and Global Oil Extraction.” American Economic Review, vol. 109, no. 4, Apr. 2019, pp. 1568–615. Scopus, doi:10.1257/aer.20171438.
Asker J, Collard-Wexler A, De Loecker J. (Mis)Allocation, Market Power, and Global Oil Extraction. American Economic Review. 2019 Apr 1;109(4):1568–1615.
Published In
American Economic Review
DOI
EISSN
1944-7981
ISSN
0002-8282
Publication Date
April 1, 2019
Volume
109
Issue
4
Start / End Page
1568 / 1615
Related Subject Headings
- Economics
- 38 Economics
- 35 Commerce, management, tourism and services
- 15 Commerce, Management, Tourism and Services
- 14 Economics