Wednesday , October 18 2017
Home / EconLog Library / My 1983 Response to Koch Lobbying on Oil

My 1983 Response to Koch Lobbying on Oil

Summary:
In preparation for my imminent retirement, I've been going through files and files, throwing things out but keeping things too. I came across a letter I wrote to George Pearson of Koch Industries, who took me to dinner in July 1983 to lobby me on something I didn't need lobbying on: oil import fees were and are a bad idea. (Was it legal for him to buy me a nice dinner? Yes. The law changed effective January 1, 1984.) Here's my letter in response to a document that George gave me at dinner, followed by his response. My letter:DRH to George Pearson.pdf Clarification: When I wrote, "Only if refiners price their products at average cost rather than marginal cost will the low price on domestic crude be

Topics:
David Henderson considers the following as important:

This could be interesting, too:

David Henderson writes Henderson and Cochrane on Climate Policy

David Henderson writes Henderson and Cochrane on Climate Policy

David Henderson writes Cents and Sensibility

David Henderson writes Cook vs. Cass on Global Warming

In preparation for my imminent retirement, I've been going through files and files, throwing things out but keeping things too.

I came across a letter I wrote to George Pearson of Koch Industries, who took me to dinner in July 1983 to lobby me on something I didn't need lobbying on: oil import fees were and are a bad idea. (Was it legal for him to buy me a nice dinner? Yes. The law changed effective January 1, 1984.)

Here's my letter in response to a document that George gave me at dinner, followed by his response.

My letter:
DRH to George Pearson.pdf

Clarification: When I wrote, "Only if refiners price their products at average cost rather than marginal cost will the low price on domestic crude be translated into low product prices," I meant, and should have said "base their product prices on average cost rather than marginal cost." I didn't believe then, and don't believe now, that the retail gasoline industry is a perfectly competitive one. What I was getting at--and I fear I misled George--is that the refiners look at marginal cost rather than average cost in setting prices.

George's response:
Pearson response, phone # deleted.pdf



David Henderson
David Henderson is a British economist. He was the Head of the Economics and Statistics Department at the OECD in 1984–1992. Before that he worked as an academic economist in Britain, first at Oxford (Fellow of Lincoln College) and later at University College London (Professor of Economics, 1975–1983); as a British civil servant (first as an Economic Advisor in HM Treasury, and later as Chief Economist in the Ministry of Aviation); and as a staff member of the World Bank (1969–1975). In 1985 he gave the BBC Reith Lectures, which were published in the book Innocence and Design: The Influence of Economic Ideas on Policy (Blackwell, 1986).

Leave a Reply

Your email address will not be published. Required fields are marked *