A Primer on Unconventional Energy and Deposit Shocks
25 Pages Posted: 21 Dec 2013
Date Written: December 19, 2013
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
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