Template-Type: ReDIF-Paper 1.0
Author-Name:  Alexander James
Author-Name-First: Alexander
Author-Name-Last: James
Author-Email: alex.james@uaa.alaska.edu
Author-Workplace-Name: Department of Economics and Public Policy, University of Alaska Anchorage
Author-Name:  Brock Smith
Author-Name-First: Brock
Author-Name-Last: Smith
Author-Email: brock.smith1@montana.edu
Author-Workplace-Name: Department of Agricultural Economics and Economics, Montana State University
Title:  The Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution: Comment
Abstract:  In the mid 2000s, shale-energy-rich U.S. counties experienced a sudden and significant economic shock resulting from energy extraction. While the resulting localized economic effects are relatively well understood, less is known about the geographic dispersion of the effects. We build upon an existing literature, most notably Feyrer, Mansur, and Sacerdote (2017), by examining the conditional economic effects of nearby energy production. Because energy-producing counties tend to be located near each other, producing counties experience inward economic spillovers from other nearby producing counties and this inflates the estimated effect of own-county production. Accounting for this, we identify smaller income effects of hydrocarbon production than Feyrer, Mansur, and Sacerdote (2017), limited to counties within 60-80 miles of the source of production. The proposed estimation strategy can be applied more generally to estimate the dispersion of multiple, simultaneously occurring economic shocks.

Creation-date: 2018-02 
File-URL: http://www.econpapers.uaa.alaska.edu/RePEC/ala/wpaper/ALA201802.pdf
File-Format: Application/pdf
Classification-JEL: L14, L81, Q33
Keywords: Economic Shocks; Regional Development; Economic Propagation
Publication-Status: Forthcoming
Number: 2018-02
Handle: RePEc:ala:wpaper:2018-02