1. Show or hide comments about the document.

  2. Search over the document's text.

  3. Share the document through social networks or e-mail.

  4. After selecting an area on the page.

  5. ...you can:
    copy the text
    share the segment
    comment
    cite the document

Spring 2018
ISSN 0890-913X
Volume 33, Number 1

Removing the 1970s Crude Oil Price Controls: Lessons for Free-Market Reform

Robert P. Murphy, Free Market Institute at Texas Tech University
Download Share e-mail
  • << Back to editing
  • Previous version by
  • << Older
  • Newer >>
  • Revert to this one
  • Edit
  • Fullscreen
  • Show comments
  •  
  •  
  •  
  •  
  • Zoom:
     
     
  • Page:  / 16
  •  
  •  
  •  
  • Line spacing:
     
     
  • Word spacing:
     
     
  • Search:FindClose
 
search results
 
 
 
 
 
 
 
 
 
 
 
432
648
1
0
/index.php?action=ajax&rs=GDMgetPage&rsargs[]=2018 Journal of Private Enterprise Vol 33 No 1 Spring parte5.pdf&rsargs[]=0
TheJournalofPrivateEnterprise33(1),2018,6378Removingthe1970sCrudeOilPriceControls:LessonsforFree-MarketReformRobertP.Murphy*FreeMarketInstituteatTexasTechUniversity______________________________________________________AbstractDuringthe1970s,theUSfederalgovernmentenactedanevolvingsetofdetailedpricecontrolsoncrudeoil.Yetbyearly1981,almostallvestigesofthecommand-and-controlregimehadbeenremoved,withareturntoanormalmarketfortheresource.Thispaperexploresthefactorsleadingtosucharapidderegulation,distillinglessonsthatmaybeusefulforotherareasoffree-marketreform.Iconcludethatabsurdunintendedconsequences,academicunity,publicchoiceconsiderations,andluckallplayedarole.______________________________________________________JELCodes:N42,N52,Q48Keywords:oilsector,pricecontrols,Nixonshock,deregulation,energyeconomicsI.IntroductionTheresnothingmorepermanentthanatemporarygovernmentprogramisacommonandcynicalviewamongmarket-friendlyeconomists.LudwigvonMises(1949)andRobertHiggs(1987)botharguedthatinitialgovernmentinterventionsintoasectoroftheeconomywilltendtogrow.Publicchoicescholarscertainlyappreciatethedifficultyofrollingbackmajorpolicychangeswhentheyinvolvemassiveflowsofwealthtoconcentratedbeneficiaries.USgovernmentinterventionintocrudeoilmarketsduringthe1970sseemsaperfectexampleofthispattern.WhatstartedwithRichardNixonsgeneralwage-and-pricecontrolssoonevolvedespeciallyaftertheOPECembargointoanintricatesystemofpriceandallocationcontrolsinthepetroleummarket.Lane(1981)summarizedtheepisode:FromtheirimpositioninJanuary1974to*TheJohnTempletonFoundationfundedthisresearch.RobertBradley,MichaelGiberson,DavidR.Henderson,andananonymousrefereeprovidedhelpfulcommentsand/orresearchsuggestions.GonzaloMaceraprovidedresearchassistance.
GLIFOS-digital_archive