Resource Booms and the Macroeconomy: The Case of U.S. Shale Oil

Nida Cakir Melek, Michael Plante and Mine Yucel

Review of Economic Dynamics, 2021, vol. 42, 307-332

Abstract: We examine the implications of the U.S. shale oil boom for the U.S. economy, trade balances, and the global oil market. Using comprehensive data on different types of crude oil, and a two-country general equilibrium model with heterogenous oil and refined products, we show that the shale boom boosted U.S. real GDP by a little more than 1 percent and improved the oil trade balance as a share of GDP by about 1 percentage point from 2010 to 2015. The boom led to a decline in oil and fuel prices, and a dramatic fall in U.S. light oil imports. In addition, we find that the crude oil export ban, a policy in effect until the end of 2015, was a binding constraint, and would likely have remained a binding constraint thereafter had the policy not been removed. (Copyright: Elsevier)

Keywords: DSGE; Tardel Oil; Shale; Fuel prices; Export ban (search for similar items in EconPapers)
JEL-codes: F41 Q33 Q38 Q43 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.red.2020.11.006

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