The regional economic impact of oil and gas extraction in Texas

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.