Arora, Vipin and Lieskovsky, Jozef (2013): Natural Gas and U.S. Economic Activity.
This is the latest version of this item.
Preview |
PDF
MPRA_paper_50197.pdf Download (2MB) | Preview |
Abstract
Previous empirical work has shown that real natural gas prices have a negligible impact on total U.S. industrial production and most of its sub-indices. We reassess these conclusions using a multivariate framework and a time-frame that includes recent developments in the U.S. natural gas market. Our results show that natural gas does affect U.S. economic activity, primarily through changes in its production. The shale gas revolution has changed this relationship - a one percentage point increase in natural gas supply raises total U.S. industrial production by more after 2008 than before.
Item Type: | MPRA Paper |
---|---|
Original Title: | Natural Gas and U.S. Economic Activity |
Language: | English |
Keywords: | Natural gas, VAR, shale, endogenous, industrial production |
Subjects: | F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F47 - Forecasting and Simulation: Models and Applications E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E37 - Forecasting and Simulation: Models and Applications Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy |
Item ID: | 50197 |
Depositing User: | Vipin Arora |
Date Deposited: | 08 Mar 2014 10:12 |
Last Modified: | 27 Sep 2019 16:45 |
References: | ACC (2011). “Shale Gas and New Petrochemicals Investment: Benefits for the Economy, Jobs, and US Manufacturing.” ACC (2012). “Shale Gas, Competitiveness and New U.S. Investment: A Case Study of Eight Manufacturing Industries.” Apergis, Nicholas and James E. Payne (2010). “Natural Gas Consumption and Economic Growth: A Panel Investigation of 67 Countries.” Applied Energy 87(8): 2759-2763. Arora, Vipin (2013). “Aggregate Impacts of Recent U.S. Natural Gas Trends.” MPRA, Working Paper 43708. CitiGPS (2012). “Energy 2020: North America the New Middle East?" Costello, Dave, Frederick L. Joutz, and Poonpat Leesombatpiboon (2006). “Natural Gas Prices and Industrial Sector Responses: An Experimental Module for STIFS.” Mimeo. Eklund, Jana, George Kapetanios, and Simon Price (2011). “Forecasting in the Presence of Recent Structural Change.” CAMA, Working Paper 2011-23. Enders, Walter (2010). Applied Econometric Time Series. New Jersey: Wiley. Hamilton, James D. (2008). “Oil and the Macroeconomy.” In Steven N. Durlauf and Lawrence E. Blume, eds., The New Palgrave Dictionary of Economics. New York: Palgrave Macmillan. ICF (2012). “Oil and Gas Technology Innovation: How it is Spurring U.S. Economic Growth.” IHS (2011). “The Economic and Employment Contributions of Shale Gas in the United States.” IHS (2012). “The Economic and Employment Contributions of Unconventional Gas Development in State Economies.” Kilian, Lutz (2008). “The Economic Effects of Energy Price Shocks.” Journal of Economic Literature 46(4): 871-909. Kilian, Lutz (2009). “Not All Oil Price Shocks are Alike: Disentangling Demand and Supply Shocks in the Crude Oil Market.” American Economic Review 99(3): 1053-1069. Kinnaman, Thomas C. (2010). “The Economic Impact of Shale Gas Extraction: A Review of Existing Studies.” Bucknell University, Other Faculty Research and Publications Paper 5. Kliesen, Kevin L. (2006). “Rising Natural Gas Prices and Real Economic Activity.” Federal Reserve Bank of St. Louis Review 88(6), 511-526. Leone, Roberta (1982). “Impact of Higher Energy Prices on the Northeast Regional Economy.” Contemporary Economic Policy 1(1), 1-8. Lutkepohl, Helmut (2007). New Introduction to Multiple Time Series Analysis. Berlin: Springer. PWC (2011). “Shale Gas: A Renaissance in U.S. Manufacturing?” PWC (2012a). “Economic Impacts of the Oil and Natural Gas Industry on the U.S. Economy in 2011.” PWC (2012b). “Shale Gas: Reshaping the U.S. Chemicals Industry.” PWC (2013). “Shale Oil: The Next Energy Revolution.” Ramberg, David J. and John E. Parsons (2012). “The Weak Tie Between Natural Gas and Oil Prices.” The Energy Journal 33(2): 13-35. Sari, Ramazan, Bradley Ewing, and Ugur Soytas (2008). “The Relationship Between Disaggregate Energy Consumption and Industrial Production in the United States: An ARDL Approach.” Energy Economics 30: 2302-2313. Stock, James H. and Mark W. Watson (2008). “Phillips Curve Inflation Forecasts.” Federal Reserve Bank of Boston, Conference Series [Proceedings]. Weber, Jeremy G. (2012). “The Effects of a Natural Gas Boom on Employment and Income in Colorado, Texas, and Wyoming.” Energy Economics 34: 1580-1588. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/50197 |
Available Versions of this Item
-
Natural Gas and U.S. Economic Activity. (deposited 18 Nov 2012 13:52)
- Natural Gas and U.S. Economic Activity. (deposited 08 Mar 2014 10:12) [Currently Displayed]