Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution: Comment

2020 ◽  
Vol 110 (6) ◽  
pp. 1905-1913 ◽  
Author(s):  
Alexander G. James ◽  
Brock Smith
Keyword(s):  
Energy Production ◽  
Spatial Dispersion ◽  
Spatial Aggregation ◽  
Economic Shocks ◽  
Geographic Dispersion ◽  
Estimation Strategy ◽  
Propagation Effects

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. (JEL E24, E32, J31, Q35, Q43, R11, R23)

scholarly journals Spatial interdependence and instrumental variable models

2019 ◽  
Vol 8 (4) ◽  
pp. 646-661 ◽  
Author(s):  
Timm Betz ◽  
Scott J. Cook ◽  
Florian M. Hollenbach
Keyword(s):  
Instrumental Variable ◽  
Ordinary Least Squares ◽  
Economic Shocks ◽  
Specific Kind ◽  
Estimation Strategy ◽  
Weighted Averages ◽  
Outcome Interdependence ◽  
Spatial Interdependence ◽  
Biased Estimates ◽  
General Estimation

AbstractInstrumental variable (IV) methods are widely used to address endogeneity concerns. Yet, a specific kind of endogeneity – spatial interdependence – is regularly ignored. We show that ignoring spatial interdependence in the outcome results in asymptotically biased estimates even when instruments are randomly assigned. The extent of this bias increases when the instrument is also spatially clustered, as is the case for many widely used instruments: rainfall, natural disasters, economic shocks, and regionally- or globally-weighted averages. Because the biases due to spatial interdependence and predictor endogeneity can offset, addressing only one can increase the bias relative to ordinary least squares. We demonstrate the extent of these biases both analytically and via Monte Carlo simulation. Finally, we discuss a general estimation strategy – S-2SLS – that accounts for both outcome interdependence and predictor endogeneity, thereby recovering consistent estimates of predictor effects.

scholarly journals Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution

2017 ◽  
Vol 107 (4) ◽  
pp. 1313-1334 ◽  
Author(s):  
James Feyrer ◽  
Erin T. Mansur ◽  
Bruce Sacerdote
Keyword(s):  
Great Recession ◽  
Oil And Gas ◽  
Gas Production ◽  
Economic Shocks ◽  
New Production ◽  
Oil And Gas Production ◽  
Geographic Dispersion ◽  
The Great Recession ◽  
Business Income ◽  
Wage Income

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)

scholarly journals Spatial Interdependence and Instrumental Variable Models

2017 ◽  
Author(s):  
Timm Betz ◽  
Scott J Cook ◽  
Florian M Hollenbach
Keyword(s):  
Monte Carlo Simulation ◽  
Instrumental Variable ◽  
Economic Shocks ◽  
Specific Kind ◽  
Estimation Strategy ◽  
Weighted Averages ◽  
Spatially Distributed ◽  
Simple Estimation ◽  
Spatial Interdependence ◽  
Biased Estimates

Instrumental variable (IV) methods are widely used to address endogeneity concerns in re- search using observational data. Yet, a specific kind of endogeneity – spatial interdependence – is regularly ignored in this research, threatening claims of causal identification. We show that ignoring spatial interdependence results in asymptotically biased estimates, even when in- struments are randomly assigned. The extent of this bias increases when the instrument is also spatially distributed, which is the case for most widely-used instruments (such as rainfall, nat- ural disasters, economic shocks, regionally- or globally-weighted averages, etc.). We demon- strate the extent of these biases both analytically and via Monte Carlo simulation. Finally, we discuss a simple estimation strategy that can be employed to recover consistent estimates of the desired effects.

scholarly journals Economic Shocks and the Growth of the Construction Industry in Ghana Over the 50-Year Period From 1968 to 2017

2019 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Kwabena Asomanin Anaman ◽  
Irene Susana Egyir
Keyword(s):  
Exchange Rate ◽  
Construction Industry ◽  
Energy Production ◽  
Political Instability ◽  
The United States ◽  
Government Expenditures ◽  
Economic Shocks ◽  
Independent Variables ◽  
Exchange Rate Depreciation ◽  
International Events

The study analyses the relationship between the growth of the construction industry and economic shocks in Ghana over the 50-year period from 1968 to 2017 using an autoregressive modelling scheme that incorporates several economic shocks as separate independent variables. The independent variables used in the model included one positive economic shock and five negative shock variables. The positive shock variable was the sharply increased government expenditures on construction activities in selected years that allowed the government to host international events in Ghana within a period of two years. The five adverse economic shocks included in the model were political instability related to military coups, exchange rate depreciation of the local currency, Ghana cedi, with respect to the United States dollar, the average yearly temperature, aggregate electricity energy production shortfall related to a severe El Nino weather phenomenon, and incidence of extreme rainfall. The results of the analysis indicated that the most important factor influencing the growth of the construction industry in Ghana over the 50-year study period was political instability. Beyond political instability, the next most important factor was the purposely-driven sharp increases in government expenditures on construction activities for selected years that allowed the country to host international events in the country. The other significant economic shocks were the exchange rate depreciation, average temperatures, and electricity energy production shortfall; all three factors adversely affected the growth of the construction industry. The results of our study are generally consistent with those obtained from the literature concerning the positive and negative effects of economic shocks on the construction industry.

Mitochondrial matrix calcium ions regulate energy production in myocardium: A cytochemical study

1990 ◽  
Vol 48 (2) ◽  
pp. 166-167
Author(s):  
W.A. Jacob ◽  
R. Hertsens ◽  
A. Van Bogaert ◽  
M. De Smet
Keyword(s):  
Energy Metabolism ◽  
Calcium Ions ◽  
Energy Production ◽  
Regulation Of Respiration ◽  
Free Calcium ◽  
Mitochondrial Matrix ◽  
Cytochemical Study ◽  
Nmr Techniques

In the past most studies of the control of energy metabolism focus on the role of the phosphorylation potential ATP/ADP.Pi on the regulation of respiration. Studies using NMR techniques have demonstrated that the concentrations of these compounds for oxidation phosphorylation do not change appreciably throughout the cardiac cycle and during increases in cardiac work. Hence regulation of energy production by calcium ions, present in the mitochondrial matrix, has been the object of a number of recent studies.Three exclusively intramitochondnal dehydrogenases are key enzymes for the regulation of oxidative metabolism. They are activated by calcium ions in the low micromolar range. Since, however, earlier estimates of the intramitochondnal calcium, based on equilibrium thermodynamic considerations, were in the millimolar range, a physiological correlation was not evident. The introduction of calcium-sensitive probes fura-2 and indo-1 made monitoring of free calcium during changing energy metabolism possible. These studies were performed on isolated mitochondria and extrapolation to the in vivo situation is more or less speculative.

BIREFRINGENGE INDUCED BY SPATIAL DISPERSION IN ALKALI HALIDES

1985 ◽  
Vol 46 (C7) ◽  
pp. C7-475-C7-478
Author(s):  
C. López ◽  
C. Zaldo ◽  
F. Meseguer
Keyword(s):  
Spatial Dispersion ◽  
Alkali Halides
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