Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution: Comment
- (pp. 1905-13)
Abstract
Feyrer, Mansur, and Sacerdote (2017) estimates the spatial dispersion of the effects of the recent shale-energy boom by unconditionally regressing income and employment on energy production at various levels of geographic aggregation. However, producing counties tend to be located near each other and receive inward spillovers from neighboring production. This inflates the estimated effect of own-county production and spatial aggregation does not address this. We propose an alternative estimation strategy that accounts for these spillovers and identify reduced propagation effects. The proposed estimation strategy can be applied more generally to estimate the dispersion of multiple, simultaneously occurring economic shocks.Citation
James, Alexander G., and Brock Smith. 2020. "Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution: Comment." American Economic Review, 110 (6): 1905-13. DOI: 10.1257/aer.20180888Additional Materials
JEL Classification
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- E32 Business Fluctuations; Cycles
- J31 Wage Level and Structure; Wage Differentials
- Q35 Hydrocarbon Resources
- Q43 Energy and the Macroeconomy
- R11 Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics