#2008-019A "Oil Crisis, Energy-Saving Technological Change and the Stock Market Crash of 1973-74"
by Sami Alpanda, and Adrian Peralta-Alva
June 2008

The market value of U.S. corporations was nearly halved following the oil crisis of October 1973. Real energy prices more than doubled by the end of the decade, increasing energy costs and spurring innovation in energy-saving technologies by corporations. This paper uses a neo-classical growth model to quantify the impact of the increase in energy prices on the market value of U.S. corporations. More...