Aggregate impacts of recent US natural gas trends

Vipin Arora ()

The B.E. Journal of Macroeconomics, 2014, vol. 14, issue 1, 419-443

Abstract: Predictions about the macroeconomic impacts of recent US natural gas trends vary widely. I re-evaluate the possible effects on US economic activity using a standard general equilibrium model. Within this framework I show that increases in natural gas supply result in small-to-moderate economic gains, even with unemployment or under-utilized capital. Subsequent rises in economy-wide productivity are the key to magnifying the economic impacts of greater natural gas supply and resources. I also find that the macroeconomic effects of greater domestic oil production differ from those of natural gas.

Keywords: general equilibrium; natural gas; productivity; shale; unemployment; variable capacity (search for similar items in EconPapers)
JEL-codes: D24 E17 E27 Q43 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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Working Paper: Aggregate impacts of recent U.S. natural gas trends (2013)
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DOI: 10.1515/bejm-2013-0109

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