Skip to main content

(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.

Duke Scholars

Altmetric Attention Stats
Dimensions Citation Stats

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

APA
Chicago
ICMJE
MLA
NLM
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