Ironman has developed a neat tool that allows you to input your vehicle’s typical mileage and then calculate how much money you’re likely to save on a particular trip by driving slower. Pretty cool!
Yearly Archives: 2008
How big a contribution could oil speculation be making?
A key reason why oil prices have been going up is that Asia and the oil producing countries are consuming more while global oil production has stagnated. That means Europe and America had to consume less, and a very high price proved necessary to accomplish that.
I do believe that speculation has been another factor that contributed to recent high oil prices. However, a key element of the bubble story is that there needs to be a very limited response of quantity demanded to the price increases, which the most recent data persuade me is no longer the case. Some of the estimates I’ve been hearing of the size of the contribution speculation is currently making to the price are therefore difficult to defend. Here I explain why, essentially elaborating on Paul Krugman’s theme.
Update and Summary: Economic Activity Measures
New aggregate indicators on the macroeconomy are out. How do they compare against a summary measure of the macro series the NBER BCDC focus on?
Saudi oil production increases
The recently announced Saudi oil production increases are more modest than had been suggested in some of the earlier rumors. The Oil Drum ([1],[2]) is your source for the meaning of the latest announcements.
How to save money on gas
Environmental Economics and The Energy Collective are among the many voices recently advising consumers they could save gasoline by driving more slowly. I was curious to take a look at the evidence behind such claims.
China and the business cycle
Could the phenomenal growth train get derailed?
Drilling Our Way to …
Prospects for Nonresidential Investment: Tales from Residential Investment and Corporate Profits
Nonresidential investment has been increasing until 2008Q1, at which time it essentially stalled (-0.2 ppts. annualized in log terms). On the basis of past historical correlations, what’s in store?
Saudi oil production plans
A potentially huge story from the New York Times.
A Closer Look at the Impact of Higher Gasoline Prices
There’s been a lot of discussion recently about the effects of high gasoline prices on the quantity demanded of gasoline, as well driving behavior (Jim Hamilton, Jim Hamilton, CR, CR, Paul Krugman). David Austin, whose work I have cited often on this blog, gave a fascinating presentation, entitled “Effects of Gasoline Prices on Driving Behavior and Vehicle Choice” at the recent Society of Government Economists conference in Washington, DC a couple of weeks ago. In it, he tackles some of these issues. (Note, these are his own personal views and do not necessarily represent the views of any specific organization.)