A Primer on Unconventional Energy and Deposit Shocks

Abstract

Unconventional energy development requires large payments to landowners resulting in significant increases in local bank deposits. This paper identifies counties impacted by unconventional energy development in the United States in order to analyze these unsolicited increases in bank deposits. I outline the methodology used to classify impacted counties and I characterize the behavior of local deposits. I conclude that the deposit shock is meaningful in magnitude, persistent, and unsolicited by banks.

Keywords: banks, natural experiement, deposits

JEL Classification: G21 G32