... 1.1 are estimated using SMM according to the strategy outlined in Lee and Ingram (1991). The discount factor is set to 0.9, consistent with the findings of Adelman (1993), and the constant cost ... production and an estimated demand for world oil to forecast equilibrium oil output and price levels into the future. In the model presented in this chapter, the demand for oil interacts with ... increasing or decreasing in cumulative discoveries, depending on the level of CD and the values of γ0 and γ1. Using the cumulative discoveries to date, the number of firms that enter in equilibrium,...