Public Policy Problems of the Domestic Crude Oil Industry: Rejoinder

Abstract

Most of the space [here] will be devoted to a discussion of Campbell’s (1964) comment, for it indicates the necessity to elaborate some points of my article, and it requires further discussion about the rate of exploration. Steele’s (1964) comment, on the other hand, is primarily based on what he believes to be the relevant political, rather than economic, considerations. His argument lacks analytical rigour and is, in fact, devoid of analytical content. (Moreover, his attempt to demonstrate ‘imperfections in the mode of analysis [of my paper]’ suffers from logical errors.) Given the space limitations, therefore, I will give only brief consideration to some of the major deficiencies in Steele’s argument at the end.

American Economic Review, 54 (1964). The author is grateful to E. Smolensky for helpful comments.