the housing market impacts of shale gas development using data from pennsylvania and an array of empirical techniques to control for confounding factors we recover hedonic estimates of property value impacts from nearby shale gas development that vary with water source well productivity and visibility results indicate large negative impacts on nearby groundwater dependent homes while piped water dependent homes exhibit smaller positive impacts suggesting benefits from lease payments results have implications for the debate over regulation of shale gas development jel l71 q35 q53 r31 technological improvements in the extraction of oil and natural gas from unconventional sources have transformed communities and landscapes and brought debate and controversy in the policy arena shale gas plays underlying the populated northeastern united states were thought to be uneconomical less than ten years ago but now contribute a major share of us gas supply 1 natural gas has been hailed as a bridge to energy independence and a clean future because of its domestic sourcing and compared with coal and petroleum derivatives its smaller carbon footprint and reduced emissions of other pollutants e g particulates sulfur dioxide car

the long term consequences of resource based specialisation using geological variation in oil abundance in the southern us i examine the long term effects of resource based specialisation through economic channels in 1890 oil abundant counties were similar to other nearby counties but after oil was discovered they began to specialise in its production from 1940 90 oil abundance increased local employment per square kilometre especially in mining but also in manufacturing oil abundant counties had higher population growth higher per capita income and better infrastructure 2010 the author s the economic journal 2010 royal economic society

does asymmetric information matter in the early insurance market evidence from the auto insurance market in the late 1960s the performance of automobile insurance declined dramatically in japan in spite of rapid growth in the diffusion rate and the premiums were sharply raised several times in order to improve the situation this observation indicates the possible presence of adverse selection death spiral and provides an ideal situation for assessing informational asymmetry using bodily injury liability bil insurance data from 46 japanese prefectures over the period 1966 to 1975 this article tests two hypotheses of adverse selection i high risk drivers were more likely to join the bil insurance market and ii sharp premium increases drove low risk policyholders away various empirical analyses show that there is little evidence for either type of adverse selection we also test whether a risk misperception hypothesis can explain our results and find some evidence that the population density have a significantly positive impact on the demand for bil insurance an earlier version of this artic

the big push natural resource booms and growth a simple application of big push reasoning suggests that natural resource booms can be important catalysts for development in poorer countries in this paper we present evidence from seven latin american countries that natural resource booms are sometimes accompa nied by declining per capita gdp we present a model with natural resources increasing returns in the spirit of big push models and expectations to clarify some of the reasons this may happen q 1999 elsevier science b v all rights reserved

will the locals benefit the effect of wind power investments on rural wages abstract an important and poorly understood question when communities consider wind power investments is whether the local population will benefit financially i examine the effect of wind power investment on wages in rural counties in the us i combine quarterly panel data on wages with data on all wind power plant investments larger than 1 megawatt mw using a bayesian multilevel model estimated by mcmc i estimate a significant positive effect with a magnitude consistent with a 2 permanent increase in wages following an investment in a large wind farm of 400 mw however this effect has large geographic and socioeconomic variation counties with low employment tend to see little impact on wages from wind power potentially because slack in the labor market prevents wages from rising from a policy perspective these results are most relevant for local regulators and planners who seek to balance the benefits and costs of wind farms to the community this research indicates that wind farms can provide on average a modest boost to local wages with some areas seeing an out sized effect

how effective is lifetime health cover in raising private health insurance coverage in australia an assessment using regression discontinuity the australian government introduced three major private health insurance policy initiatives in recent years these are in chronological order i the private health insurance incentives scheme phiis which imposes a tax levy on high income earners who do not have private health insurance and provides a means tested subsidy schedule for low income earners who purchase phi ii a 30 premium rebate for all private health insurance policies to replace the means tested component under phiis and iii lifetime health cover which permits a limited form of age related risk rating by insurance funds together these policy changes have been effective in encouraging the uptake of phi the percentage of the population covered by phi rose from 31 in 1999 to 45 at the end of 2001 the difficult issue however is in disentangling the effects of the three policy changes given that they were introduced in quick succession this article attempts to evaluate the effect of lifetime health cover using a regressi

the role of income and health risk in the choice of health insurance evidence from australia abstract health insurance choice is investigated using individual data from australia where all people faced a common limited set of possible health insurance policies the data cover two separate regimes one in which insurance choice was for a more generous level of coverage and one in which the choice was a more dramatic one between insurance and no insurance coverage in determining health insurance choice the results indicate a major role for income a major role for premium notably in the first regime and a minor role for observed factors related to health risk aside from age and sex

the great east asian capital flow reversal reasons responses and ramifications the exodus of foreign capital combined with the flight of domestic funds abroad caused massive depreciations especially against the us dollar of the indonesian rupiah thai baht malaysian ringgit philippines peso and south korean won the currencies of the economies hereafter termed the asian 5 it also caused dramatic stockmarket falls in the greater east asian region including hong kong and singapore at times in us terms the indonesian rupiah was worth only one fifth of its june 1997 value while the thai baht and korean won lost around half their former values the philippines peso and malaysian ringgit fell some 40 per cent below pre crisis values this paper briefly examines the build up and subsequent sharp reversal of international investment in east asia in the 1990s before addressing the international public policy issue of whether international capital flows considered too unpredictable volatile and destablising by many economists should again be restricted finally the paper suggests that the impact of the redirection of international investment on the world economy should generate alternative export opportunities in other advanced and emerging regions thus minimising the contractionary effect of the asian crisis on the world economy

interpreting the korean crisis financial liberalisation industrial policy and corporate governance as the interpretation of its economic miracle has been so the interpretation of the recent crisis in korea remains highly controversial 1 although there are many important issues which have been raised by the korean crisis such as exchange rate policy labour market policy and the architecture of the international financial system chang 1998a three issues have been especially controversial in the debate financial liberalization industrial policy and corporate governance

health insurance and lifestyles this article contributes to the discussion surrounding the existence of ex ante moral hazard and propitious selection in a voluntary private health insurance scenario moreover it provides an estimation of the determinants of lifestyle choices and of private health insurance demand a multivariate probit is estimated for health insurance demand and lifestyle decisions to take into account the potential endogeneity of these decisions the results indicate that there is evidence of ex ante moral hazard in deciding to do sports and eating healthy snacks hence no propitious selection has been found for these decisions another relevant result shows that there is no individual heterogeneity for the lifestyle choices except for smoking and private health insurance choice evidence from the results also supports the idea that there are nonobservable variables playing a role in the lifestyle decisions these results provide some directions for policymakers such as the promotion of precautionary behaviours a

social costs from proximity to hydraulic fracturing in new york state the study reports data from an economic choice experiment to determine the likely welfare impacts of hydraulic fracturing in this case using natural gas extracted by hydraulic fracturing for household electricity data were collected from an internet survey of 515 residents of new york state the welfare analysis indicated that on average households incur a welfare loss from in state hydraulic fracturing as the source of their electricity the evidence suggests that households in shale counties bear more costs from hf electricity than households out of shale counties the average welfare loss is substantive estimated at 40 46 of average household electric bills in shale counties and 16 20 of bills in counties without shale the evidence also suggests that relative proximity to hf well sites also increases cost borne by households

fracking and environmental in justice in a texas city abstract shale gas development sgd via horizontal drilling and fracking is touted for economic benefits and spurned for health and environmental impacts despite sgd s socioecological salience few peer reviewed empirical studies document the distribution of positive and negative effects the city of denton texas has 280 active gas wells and over a decade of sgd here we use an environmental justice framework to analyze the distribution of sgd s costs and benefits within denton using data on mineral property values from 2002 to 2013 and gas well locations we ask who owns denton s mineral rights i e the greatest financial beneficiaries and how does this ownership pattern relate to who lives near gas wells i e those who shoulder the nuisances and health impacts our results show that denton s mineral wealth is widely distributed around the u s residents own 1 of the total value extracted and the city government is a large financial beneficiary in addition to distributional inequities our analysis demonstrates that split estate doctrine legal deference to mineral owners and sgd s uniqueness in urban centers create disparities in municipal sgd decision making processes the environmental justice issues associated with fracking in denton also provide one possible explanation for residents november 2014 vote to ban hydraulic fracturing

an economic impact report of shale gas extraction in pennsylvania with stricter assumptions abstract during the onset of shale gas development a variety of economic impact studies were released through the gray literature without formal peer review in a review of six such impact reports kinnaman 2011 speculates about several major issues worth scrutiny arising with analysis using input output models his central critique focuses on the assumptions of how industry spending is represented and how leasing and royalty dollars are spent in this study we use detailed county records and results from a survey to directly address these assumptions and compare our results to the findings in an economic impact study of marcellus shale development in pennsylvania which kinnaman critiqued our results which are only about 52 of the prior study confirm his supposition that some ex ante studies use unrealistic assumptions which lead to gross overestimates of the impacts

the impact of natural resources survey of recent quantitative evidence the cross country empirical evidence for the natural resource curse is ample but unfortunately fraught with econometric difficulties a recent wave of studies on measuring the impact of natural resource windfalls on the economy exploits novel datasets such as giant oil discoveries to identify effects of windfalls uses natural experiments and within country econometric analysis and estimates local impacts these studies offer more hope in the search of quantitative evidence

resource richness and economic growth in contemporary u s abstract we study the effects of energy innovation and policy on income growth between 1997 and 2014 us corn soybean and cotton production almost fully converted to genetically modified crops starting around 2007 improved tight oil and shale gas technologies turned the declining us fossil fuel production into a booming industry we study the effects of these two resource technology revolutions on us state income we find that the shale revolution increased income in states abundant in oil and gas resources states dependent on agricultural production also saw an increase in income which we however attribute not only to the gm innovation but to a demand increase brought by the energy policy act of 2005

long term effects of income specialization in oil and gas extraction the u s west 1980 2011 abstract the purpose of the study is to evaluate the relationships between oil and natural gas specialization and socioeconomic well being during the period 1980 to 2011 in a large sample of counties within the six major oil and gas producing states in the interior u s west colorado montana new mexico north dakota utah and wyoming the effects of participation in the early 1980s oil and gas boom and long term specialization were considered as possible drivers of socioeconomic outcomes generalized estimating equations were used to regress 11 measures of economic growth and quality of life on oil and gas specialization while accounting for various confounding factors including degree of access to markets initial socioeconomic conditions in 1980 and dependence on other economic sectors long term oil and gas specialization is observed to have negative effects on change in per capita income crime rate and education rate participation in the early 1980s boom was positively associated with change in per capita income however the positive effect decreases the longer counties remain specialized in oil and gas our findings contribute to a broader public dialogue about the consequences of resource specialization involving oil and natural gas and call into question the assumption that long term oil and gas development confers economic advantages upon host communities

employment impacts of upstream oil and gas investment in the united states abstract we use dynamic panel methods at the state level to understand how the increase in exploration and production of oil and natural gas since the mid 2000s has impacted employment we find robust statistical support for the hypothesis that changes in drilling do in fact have an economically meaningful and positive impact on employment the strongest impact is contemporaneous though months later in the year also experience statistically and economically meaningful growth once dynamic effects are accounted for we estimate that an additional rig count results in the creation of 31 jobs immediately and 315 jobs in the long run robustness checks suggest that these multipliers could be even bigger our results imply that the national impact of upstream investment remains small perhaps due to the sector s small size and inter state migration

public vs private demand for covering long term care expenditures this article studies the determinants of the willingness to pay wtp for long term care ltc insurance coverage two alternatives are considered one compulsory financed through taxes the other purchased on a voluntary basis and paid through a premium wtp was elicited through open ended contingent valuation within a survey conducted in the italian region emilia romagna about ltc population needs we model information on individual wtp as a two stage process where respondents first establish their interest for ltc cover then state their wtp results show that interest and wtp are influenced by different variables and that differences arise also between the wtp for public and private coverage

who wins in an energy boom evidence from wage rates and housing this article presents evidence on the distributional effects of energy extraction by examining the effect of the recent u s energy boom on wage rates and housing the boom increased local wage rates in almost every major occupational category the increase occurred regardless of whether the occupation experienced a corresponding change in employment suggesting a tighter labor market that benefited local workers wage rates also increased substantially across the entire wage rate distribution although the percentage increase was slightly higher at the bottom of the distribution than at the top local housing values and rental prices both increased thereby benefiting landowners for renters the increase in prices was completely offset by a contemporaneous increase in income the results suggest that bans on drilling have negative monetary consequences for a large share of local residents jel j23 q33 r31

financial restriction and the developmental state in east asia toward a more complex political economy recent financial crises in asia have renewed debates over the appropriate degree and scope of government intervention in financial markets governments in two countries affected by financial crises

oil prices and rural migration the dutch disease goes south abstract we construct a two period general equilibrium model to evaluate policies affecting agricultural migration and exports the model is applied to mexico for the period 1986 1987 to obtain certain qualitative policy conclusions related to the dutch disease brought about by oil price increases dutch disease phenomena can be brought about both as the result of real exchange rate changes as well as price changes caused by migration out of agriculture in the short run it may be possible to use fiscal policy such as value added subsidies to agriculture to at least partially negate the effects of an oil price increase on agricultural exports jel f31 f41

unconventional energy taxation and interstate welfare an analysis of pennsylvania s severance tax policy abstract natural gas production from unconventional sources has increased over the past decade a significant portion of this increase has come from output in the marcellus region of pennsylvania this output has altered gas markets and repositioned pennsylvania as a major gas exporter it has also put pennsylvania at odds with other states as it is one of a few without a formal severance tax on extractive resources in this paper we combine results from a structural demand model with a two sector trade model to analyze the interstate welfare impacts of pennsylvania s current severance tax proposal our results demonstrate that most of the welfare losses from this proposed policy are likely to be shifted to residents in other states we also demonstrate how fluctuations in gas prices can substantially reduce tax revenue these findings have important implications for both pennsylvania and u s energy policy given the significant rise in energy production from new sources throughout the u s

geographic dispersion of economic shocks evidence from the fracking revolution abstract we track the geographic and temporal propagation of local economic shocks from new oil and gas production generated by hydrofracturing each million dollars of new production produces 80 000 in wage income and 132 000 in royalty and business income within a county within 100 miles one million dollars of new production generates 257 000 in wages and 286 000 in royalty and business income roughly two thirds of the wage income increase persists for two years assuming no general equilibrium effects new extraction increased aggregate us employment by as many as 640 000 and decreased the unemployment rate by 0 43 during the great recession jel d86 l14 l81 l82

migration flows in commodity cycles assessing the role of migration policies this paper sheds light on the role of immigration policies in shaping immigration flows in responses to labor market changes using data from australia during the 2001 to 2015 commodity cycle as a quasi experiment we find that employer sponsored demand driven immigration varied in line with commodity prices with commodity intensive states witnessing stronger growth rates than remaining states over the resources boom period there is no evidence of any such patterns for points based supply driven immigrants moreover we do not find either employer sponsored or point based migration flows increase in non tradable sector in relative to tradable sector in the triple differences analysis with state industry level data these findings emphasize the importance of employer sponsored immigration in alleviating short term local labor shortages c 2020 elsevier b v all rights reserved

linking the price of agricultural land to use values and amenities the recent appreciation in agricultural land values across the united states has raised a number of important questions for farmers farmland owners lenders and policy makers while traditional economic theory suggests that farmland values are determined by the discounted stream of expected returns previous research has shown that agricultural land values are actually driven by a complex set of factors this study leverages the unique characteristics of a national land based usda survey on farmland values and cash rents to estimate broad national level determinants of the market value of cropland and pastureland our results support past research findings that indicate farmland values are only partially explained by agricultural returns we find that multiple nonagricultural attributes of farmland also contribute to the market value

i can hear my neighbors fracking the effect of natural gas production on housing values in tarrant county tx abstract in this study we estimate the effect of hydraulically fractured natural gas wells on residential real estate prices we exploit variation in distance to nearby gas wells in home sale prices to estimate this effect in contrast to previous studies we focus on a relatively densely populated area a section of the dallas ft worth arlington urban area using a dataset of 127 556 observations from tarrant county texas over the period 2005 2011 we find robust evidence that increased proximity to a well leads to reduced home sale prices existence of wells within 3500 ft of a property reduces property values by approximately 1 5 3 we demonstrate that the reduction seems to be driven by unconventional rather than conventional wells and that well construction causes an added 1 2 reduction in home value

testing for weak form efficiency of crude palm oil spot and future markets new evidence from a garch unit root test with multiple structural breaks there is a sizeable literature that tests for weak form efficiency in commodity and energy spot and future prices while many studies now allow for multiple structural breaks to address the criticism that conventional unit root tests have low power to reject the unit root null in the presence of structural change the extant literature overlooks the fact that conventional unit root tests are biased in the presence of conditional heteroscedasticity we apply a recently developed generalized autoregressive conditional heteroscedasticity garch unit root test with multiple structural breaks to crude palm oil spot and future prices and find much more evidence against weak form efficiency than that found using tests that fail to allow for conditional heteroscedasticity our results point to the importance of allowing for heteroscedasticity when testing for efficiency in commodity and energy spot and future prices

the economic impact of the coal boom and bust in this paper we examine the impact of the coal boom in the 1970s and the subsequent coal bust in the 1980s on local labour markets in kentucky ohio pennsylvania and west virginia we address two main questions in our analysis how were non mining sectors affected by the shocks to the mining sector how did these effects differ between sectors producing local goods and those producing traded goods we find evidence of modest employment spillovers into sectors with locally traded goods but not into sectors with nationally traded goods

employment trends in the u s electricity sector 2008 2012 abstract between 2008 2012 electricity generated gwh from coal the longtime dominant fuel for electric power in the us declined 24 while electricity generated from natural gas wind and solar grew by 39 154 and 400 respectively these shifts had major effects on domestic employment in those sectors of the coal natural gas wind and solar industries involved in operations and maintenance o m activities for electricity generation using an economic input output model we estimate that the coal industry lost more than 49 000 jobs 12 nationally over the five year period while in the natural gas solar and wind industries employment increased by nearly 175 000 jobs 21 we also combine published ratios for jobs per unit of fuel production and per megawatt of power plant capacity with site specific data on fuel production and power plant retirements additions and capacity changes to estimate and map direct job changes at the county level the maps show that job increases in the natural gas solar and wind industries generally did not occur where there were significant job losses in the coal industry particularly in west virginia and kentucky

dutch disease economics and oil syndrome an empirical study abstract this paper integrates the existing dutch disease models of an oil boom into a reduced form three sector model and estimates it for five developing oil exporting countries having significant agricultural and manufacturing sectors time series annual data for the period 1966 1986 are used for algeria ecuador indonesia nigeria and venezuela their output composition is altered by an increase in their oil revenues the spending effect and in the world price of manufactured goods relative to agricultural products the world price effect both effects expand the manufacturing sectors of these countries and contract their agricultural sectors the spending effect expands their nontraded sectors whereas the world price effect may expand or contract them the opposite results are implied for the oil collapse of the 1980s

the distributional impacts of an energy boom in western canada in the energy rich region of western canada inequality rose over the past two decades while poverty declined begging the question of whether the recent energy boom was a contributing factor this study uses measures of inequality and poverty across local labor markets that vary in energy extraction intensity to identify these distributional impacts the evidence shows that overall the boom increased inequality and decreased poverty there are however a few notable cases where these relationships are reversed the significance and relative magnitude of growth across and between distributional segments were consistent with these findings

institutions and the resource curse countries rich in natural resources constitute both growth losers and growth winners we claim that the main reason for these diverging experiences is differences in the quality of institutions more natural resources push aggregate income down when institutions are grabber friendly while more resources raise income when institutions are producer friendly we test this theory building on sachs and warner s influential works on the resource curse our main hypothesis that institutions are decisive for the resource curse is confirmed our results contrast the claims of sachs and warner that institutions do not play a role

booming sector and de industrialisation in a small open economy this paper presents a theoretical analysis of the dutch disease the phenomenon whereby a boom in one traded goods sector squeezes porfitability in other traded goods sectors both by directly bi

the asian debt and development crisis of 1997 causes and consequences abstract interpretations of the asian crisis have coalesced around two rival stories the death throes of asian state capitalism story about internal real economy causes and the panic triggering debt deflation in a basically sound but under regulated system story that gives more role to external and financial system causes the paper presents the stories and assesses the evidence the evidence in particular the chronology of the crisis supports the second rather better than the first the paper discusses the interests driving capital account liberalization without a framework of regulation the single most irresponsible act of public authorities in the whole crisis us and uk financial firms allied with their treasuries and with the imf the wto and the oecd saw themselves at a chronic disadvantage in the asian system of long term relationships and patient capital this alliance supported by segments of asian political and financial elites achieved dramatic domestic financial sector liberalization and capital account opening in asia over the 1990s setting up the conditions for crisis paradoxically the crisis may be looked back upon not as the triumph of benign globalization and neoliberal economic doctrine but as the beginning of its end

an econometric analysis of the demand for private health insurance in england and wales this paper discusses the nature of demand for private health insurance in a health care market in which the consumer can neither opt out of tax payments for nor lose his entitlement to public health care a single equation econometric model of the demand for private health cover is estimated using the 1982 general household survey the results indicate that income and employment status are significant determinants of the probability of health insurance purchase

resource abundance and economic growth in the united states abstract it is a common assumption that regions within the same country converge to approximately the same steady state income levels the so called absolute convergence hypothesis focuses on initial income levels to account for the variability in income growth among regions empirical data seem to support the absolute convergence hypothesis for us states but the data also show that natural resource abundance is a significant negative determinant of growth we find that natural resource abundance decreases investment schooling openness and r d expenditure and increases corruption and we show that these effects can fully explain the negative effect of natural resource abundance on growth

private health insurance and utilization of health services in chile this paper analyses the choice of private health insurance in chile and how this relates to the utilization of health services the results show the importance of some demographics on the insurance decision particularly age gender and marital status socio economic factors such as education income employment status and zone of residence all influence the probability of purchasing private insurance the relevance of these determinants is confirmed using a simulation analysis with four representative decision makers this simulation also provides evidence of a positive selection into private insurance although this would be driven by the different criteria used to set premiums under private and public insurance schemes the potential linkage between utilization of health services and private health insurance is examined using a simultaneous two equation framework two measures of utilization are estimated outpatient health services and length of stay in hospital a number of explanatory variables s

labor market impacts of u s tight oil development the case of the bakken abstract there has been a recent boom in natural gas and oil production in the us due to high energy prices and technological advances in hydraulic fracturing and horizontal drilling while north dakota oil production has increased significantly since 2005 with the development of bakken formation the impact on the rest of the economy including agriculture historically the largest industry in north dakota has received little attention we employ a variant of the corden neary resource development model to test the impact of the oil boom in north dakota caused by technical change on employment and wages in two tradable sectors of the state economy agriculture and energy alongside the rest of the state s economy using a vector error correction vec model marking the very first use of the dynamic vector autoregression var analysis in this theoretical framework it was determined that the oil boom as represented by the number of rigs in the state led to an increase in employment and wages in energy sector as expected but also in the rest of the economy oil development activity had no significant impact on agricultural wages both energy sector equations employment and wage suggest relative independence of these variables from the movements in agriculture and the rest of the economy and being impacted mostly by the changes in energy sector itself seasonality does not play significant role in energy sector employment and wages unlike in agriculture and the rest of the economy

what goes up must come down the recent economic cycles of the four most oil and gas dominated states in the us abstract the recent boom and bust in the us oil and natural gas sector provide a unique opportunity to assess whether the impacts of energy development are symmetric across the differing phases of the energy cycle this study uses the synthetic control method to examine the boom and bust effects for the four most oil and gas dominated states louisiana north dakota oklahoma and wyoming the four states are chosen as case studies because of their status as top oil and gas producers and the stronger influence of the oil and gas sector on their overall economies the results reveal differing employment impacts across the four states in both the short and long run and asymmetry during the boom and bust phases variation in the overall impacts and asymmetry of impacts across the boom bust cycle are suggested to be at least in part connected to state and local government expenditures

the effects of a natural gas boom on employment and income in colorado texas and wyoming improvements in technology have made it profitable to tap unconventional gas reservoirs in relatively impermeable shale and sandstone deposits which are spread throughout the u s mostly in rural areas proponents of gas drilling point to the activity s local economic benefits yet no empirical studies have systematically documented the magnitude or distribution of economic gains i estimate these gains for counties in colorado texas and wyoming three states where natural gas production expanded substantially since the late 1990s i find that a large increase in the value of gas production caused modest increases in employment wage and salary income and median household income the results suggest that each million dollars in gas production created 2 35 jobs in the county of production which led to an annualized increase in employment that was 1 5 of the pre boom level for the average gas boom county comparisons show that ex ante estimates of the number of jobs created by developing the fayetteville and marcellus shale gas formations may have been too large

local labor market impacts of energy boom bust boom in western canada abstract the impacts of energy price boom and bust are analyzed through the differential growth in employment and earnings between local labor markets with and without energy resources in western canada the estimated differentials attributed to the boom induced labor demand shocks show significant direct and indirect impacts on the earnings and employment within the energy extraction and other non energy local sectors respectively the local job multipliers indicate that job creation within the energy extraction sector leads to modest job creation within the non energy local sectors during boom periods for every ten energy extraction jobs created during a boom period approximately three construction jobs two retail jobs and four and a half service jobs are created

local labor markets and natural resources a synthesis of the literature a primary way that natural resources affect a locality is through the demand for labor with greater extraction requiring more workers shifts in labor demand can be measured through changes in employment and earnings the main labor market outcomes or through changes in the population and income more generally these changes may spillover into the nonresource economy leading to greater overall effects or possibly crowd out be spread unequally across the population thereby altering the distribution of income and the poverty rate or influence educational attainment as people choose between additional schooling and work in this review the literature linking natural resources to local labor markets is synthesized by organizing existing studies according to their resource measurement and the outcomes that they consider this synthesis provides an accessible guide to a literature that has boomed in recent years it also identifies promising avenues for future research and lays a foundation to further generalize the evidence through an eventual meta analysis

risk based pricing and risk reducing effort does the private insurance market reduce environmental accidents abstract this paper examines whether risk based pricing promotes risk reducing effort risk based pricing is common in private insurance markets but rare in government assurance programs we analyze accidental underground fuel tank leaks a source of environmental damage to water supplies over a 14 year period using disaggregated facility level data and policy variation in financing the cleanup of tank leaks over time the data indicate that eliminating a state level government assurance program and switching to private insurance markets to finance cleanups reduce the frequency of underground fuel tank leaks by more than 20 percent this corresponds to more than 3 000 fuel tank release accidents forgone over 8 years in one state alone a benefit in avoided cleanup costs exceeding 400 million these benefits arise because private insurers mitigate moral hazard by providing financial incentives for tank owners to close or replace leak prone tanks prior to costly accidents

credibility and reputation building in the developmental state a model with east asian applications abstract we use a game theoretic model to analyze the role of credibility reputation and investment coordination in a developmental state our model focuses on why a soft state serving narrow social groups so often obtains in less developed countries and under what conditions a hard or developmental state can emerge the model highlights the dilemma that although state and private sector alike may want economic growth both must simultaneously invest to achieve it but the equilibrium outcome analogous to the prisoner s dilemma is investment by neither even when initial conditions are favorable and a state is potentially developmental with the genuine capability to elicit private sector investment this may not materialize and an equilibrium of low or no investment will prevail to avoid this deadlock and foster growth the successful developmental state must demonstrate commitment by promoting its developmental credentials through a process of reputation building a consequent incentive to act tough together with seeming advantages of authoritarianism in implementing the developmental state may help to explain why it is often associated with an authoritarian political system

economics of modern energy boomtowns do oil and gas shocks differ from shocks in the rest of the economy abstract the us shale boom has intensified interest in how the expanding oil and gas sector affects local economic performance research has produced mixed results and has not compared how energy shocks differ from equal sized shocks elsewhere in the economy what emerges is that the estimated impacts of energy development vary by region empirical methodology as well as the time horizon that is considered this paper captures these dimensions to present a more complete picture of energy boomtowns utilizing us county data we estimate the effects of changes in oil and gas extraction employment on total employment growth as well as growth by sector we compare this to the effects of equal sized shocks in the rest of the economy to assess whether energy booms are inherently different the analysis is performed separately for nonmetropolitan and metropolitan counties using instrumental variables we difference over 1 3 6 and 10 year time periods to account for county fixed effects and to assess responses across different time horizons the results show that in nonmetro counties energy sector multiplier effects on total county employment first increase up to 6 year horizons and then decline for 10 year horizons we also observe positive spillovers to the non traded goods sector while spillovers are small or negative for traded goods in metro counties there are no significant effects on total employment although positive spillovers are present in some sectors yet equal sized shocks in the rest of the economy produce more jobs on average than oil and gas shocks suggesting that policymakers should seek more diversified development

persistent commodity shocks and transitory crime effects abstract this paper studies the dynamic response of crime to a positive income shock we estimate the short and medium run effects that an increase in copper price had on the local economy and on criminal activity in chile which is the world s leading copper producer after a decade of high prices mining municipalities did not exhibit lower crime rates compared to non mining municipalities to explain this counterintuitive result we investigated heterogeneous dynamic effects and observed that property crimes decreased only at the beginning of the boom as the dynamics of unskilled employment are consistent with the crime cycle we argue that crime evolves due to temporary labor market adjustments

the impact of fracking activities on oklahoma s housing prices a panel cointegration analysis abstract fracking drilling has opened a discussion on the role of technological developments in economies engaged in shale oil and gas formations oil and natural gas production opened new possibilities for employment benefits and housing prices decreases this paper explores for the first time the impact of fracking on housing prices across oklahoma s counties spanning the period 2000 2015 through panel methods the findings show a positive effect on housing prices while this positive effect gains statistical significance only over the period after the 2006 fracking boom the results survive a robustness check that explicitly considers distance and groundwater dependency issues

income and employment effects of shale gas extraction windfalls evidence from the marcellus region abstract new technologies combining hydraulic fracturing and horizontal drilling in oil and gas extraction are creating a sudden expansion of production residents of places where deep underground oil and gas deposits are found want to know about the broader economic social and environmental impacts of these activities that generate windfall income for some residents we first review the literature on windfall spending patterns then using the marcellus region the earliest area to be tapped using the new techniques we estimate county level employment and income effects for robustness we employ two methods using a propensity score matching approach we find no effect of fracking on income or employment a panel fixed effect regression approach suggests statistically significant employment effects in six out of seven alternative specifications but significant income effects in only one out of seven specifications in short the income spillover effects in the marcellus region appear to be minimal meaning there s little incentive at the county level to incur current or potential future costs that may be associated with this activity we conclude with some ideas on how localities might employ policies that would allow natural gas extraction to move forward benefitting landowners while establishing some financial safeguards for the broader community

the determinants of the demand for private health insurance under medicare since the introduction of medicare in 1984 the proportion of the australian population with private health insurance has declined considerably insurance for health care consumption is compulsory for the public health sector but optional for the private health sector in this paper we explore a number of important issues in the demand for private health insurance in australia the socio economic variables which influence demand are examined using a binary logit model a number of simulations are performed to highlight the influence and relative importance of various characteristics such as age income health status and geographical location on demand a number of important policy issues in the private health insurance market are highlighted first evidence is provided of adverse selection in the private health insurance pool second the notion of the wealthy uninsured is refuted and finally it is confirmed that there are significant interstate differences in the demand for private health insurance

the regional economic impact of oil and gas extraction in texas abstract this paper empirically investigates the regional economic impact of oil and gas extraction in texas during the recent shale oil boom regressions with county level data over the period 2009 2014 support smaller multiplier effects on local employment and income than corresponding estimates drawn from popular input output based studies economic impacts were larger for extraction from gas wells than oil wells while the drilling phase generated comparable impacts estimates of economic impacts are greater in a dynamic spatial panel model that allows for spillover effects across local economies as well as over time

dutch disease dynamics reconsidered abstract in this paper we develop the first model to incorporate the dynamic productivity consequences of both the spending effect and the resource movement effect of oil abundance we show that doing so dramatically alters the conclusions drawn from earlier models of learning by doing lbd and the dutch disease in particular the resource movement effect suggests that the growth effects of natural resources are likely to be positive turning previous growth results in the literature relying on the spending effect on their head we motivate the relevance of our approach by the example of a major oil producer norway empirically we find that the effects of an increase in the price of oil may resemble results found in the earlier dutch disease literature while the effects of increased oil activity increases productivity in most industries therefore models that only focus on windfall gains due to increased spending potential from higher oil prices would conclude incorrectly based on our analysis that the resource sector cannot be an engine of growth

who benefits from local oil and gas employment labor market composition in the oil and gas industry in texas and the rest of the united states abstract this paper examines local labor market outcomes from an oil and gas boom we examine two main outcomes the probability of employment and the log wages of workers employed outside the oil and gas industry for texas and the rest of the united states across gender race and ethnicity we find that men and women gain employment in the oil and gas industry during booms but such gains are much larger for men and are largest for black and hispanic men we also find positive income spillovers for workers in other industries that are similar in magnitude across demographic groups

what blows in with the wind the shift toward renewable forms of energy for electricity generation in the electricity generation industry has clear implications for the spatial distribution of generating plant traditional forms of generation are typically located close to the load or population centers while wind and solar powered generation must be located where the energy source is found in the case of wind this has meant significant new investment in wind plant in primarily rural areas that have been in secular economic decline this article investigates the localized economic impacts of the rapid increase in wind power capacity at the county level in texas unlike input output impact analysis that relies primarily on levels of inputs to estimate gross impacts we use traditional econometric methods to estimate net localized impacts in terms of employment personal income property tax base and key public school expenditure levels while we find evidence that both direct and indirect employment impacts are modest significant increases in per capita income accompany wind power development county and school property tax rolls also realize important benefits from the local siting of utility scale wind power although peculiarities in texas school funding shift localized property tax benefits to the state

the economic aftermath of resource booms evidence from boomtowns in the american west the current us oil and gas boom is injecting labour capital and revenue into communities near reserves will these communities be cursed with lower long run incomes in the wake of the boom we study the oil boom and bust cycle of the 1970s and 1980s to gain insights using annual data on drilling to identify western boom and bust counties we find substantial positive local employment and income effects during the boom in the aftermath of the bust however we find that incomes per capita decreased and unemployment compensation payments increased relative to what they would have been if the boom had not occurred

demand for health a generalised grossman model the demand for health and medical care is analysed within a generalised grossman type health investment model its underlying assumptions are shown to differ from those employed earlier in a manner which avoids some of the criticisms levelled at grossman s model the comparative static predictions of the generalised model are examined and it is demonstrated that most previous health investment models are derivable from it also the present model is applicable to a new wider range of problems thus increasing the scope of economic explanations of health behaviour