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O supply,fringe,t is modeled as an exogenous AR(1) process in logs, i.e. oil production of fringe production is inelastic to global oil price movements (see Caldara
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Useless tung oil trivia FWIW: Commodity pricing on Tung Oil has been relatively stable last couple years, ~$4-$10 gallon depending on color/grade. Highly refined/filter grades are most expensive. The dark amber/brown version sold for wood finishing is one of the cheapest grades.
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