A closer look at potential distortions in state real gross domestic product: The case of the Texas energy sector

Keith Phillips, Raul Hernandez and Benjamin Scheiner
Additional contact information
Raul Hernandez: Federal Reserve Bank of Dallas – San Antonio Branch, Postal: Research Department, San Antonio, TX, USA
Benjamin Scheiner: Federal Reserve Bank of Dallas – San Antonio Branch, Postal: Research Department, San Antonio, TX, USA

Journal of Economic and Social Measurement, 2014, issue 1-2, 105-119

Abstract: In this paper we take a closer look at a potential flaw in the measurement of Texas Real Gross Domestic Product (RGDP) – value added in the oil and gas industry. BEA estimates of Texas RGDP in oil and gas extraction have a negative correlation with factors of production and units of output. In this paper we use several different approximations of RGDP in oil and gas extraction to see which seems to be a good substitute for the BEA estimates. We find that a measure based on changes in Texas physical production of oil and gas results in an estimate of total state RGDP that is more highly correlated with Texas job growth and closer to the correlation of these measures nationally. This adjusted measure of Texas RGDP should be a better measure of Texas economic performance.

Keywords: Industry RGDP; value added; oil and gas extraction; regional data (search for similar items in EconPapers)
JEL-codes: A13 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:iosjes:0015

Access Statistics for this article

Journal of Economic and Social Measurement is currently edited by Charles G. Renfro

More articles in Journal of Economic and Social Measurement from IOS Press
Bibliographic data for series maintained by Saskia van Wijngaarden ().