Boom Town Business Dynamics

66 Pages Posted: 28 Sep 2020

See all articles by Ryan Decker

Ryan Decker

Board of Governors of the Federal Reserve System

Meagan McCollum

University of Tulsa - Collins College of Business

Gregory Upton

Louisiana State University, Baton Rouge

Date Written: September, 2020

Abstract

The shale oil and gas boom in the U.S. provides a unique opportunity to study economic growth in a "boom town" environment, to derive insights about economic expansions more generally, and to obtain clean identification of the causal effects of economic growth on specific margins of business adjustment. The creation of new business establishments--separate from the expansion of existing establishments--accounts for a disproportionate share of the multi-industry employment growth sparked by the shale boom, an intuitive but not inevitable empirical result that is broadly consistent with canonical models of firm dynamics. New firms, in particular, contribute nearly half of the cumulative economic growth resulting from the shale boom.

JEL Classification: E24, L26, M13, Q33, Q35, R23

Suggested Citation

Decker, Ryan and McCollum, Meagan and Upton, Gregory, Boom Town Business Dynamics (September, 2020). FEDS Working Paper No. 2020-81, Available at SSRN: https://ssrn.com/abstract=3699645 or http://dx.doi.org/10.17016/FEDS.2020.081

Ryan Decker (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Meagan McCollum

University of Tulsa - Collins College of Business ( email )

600 South College
Tulsa, OK 74104
United States

Gregory Upton

Louisiana State University, Baton Rouge ( email )

Baton Rouge, LA 70803
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
23
Abstract Views
283
PlumX Metrics