Are Resource Booms a Blessing or a Curse?

References

1. ↵
   1. Acemoglu, D.,
   2. A. Finkelstein, and
   3. M.J. Notowidigdo

   . 2013. “Income and Health Spending: Evidence from Oil Price Shocks.” Review of Economics and Statistics 95(4):1079–95.

   OpenUrlCrossRef
2. ↵
   1. Allcott, H., and
   2. D. Keniston

   . 2017. “Dutch Disease or Agglomeration? The Local Economic Effects of Natural Resource Booms in Modern America.” Review of Economic Studies 85:695–731.

   OpenUrl
3. ↵
   1. Altonji, J.G.,
   2. A. Anthony,
   3. J. Smith, and
   4. I. Vidangos

   . 2013. “Modeling Earnings Dynamics.” Econometrica 81(4):1395–454.

   OpenUrl
4. ↵
   1. Aragón, F.M.,
   2. P. Chuhan-Pole, and
   3. B.C. Land

   . 2015. “The Local Economic Impacts of Resource Abundance: What Have We Learned?” World Bank Policy Research Working Paper 7263. Washington, DC: World Bank.
5. ↵
   1. Aragón, F.M., and
   2. J.P. Rud

   . 2013. “Natural Resources and Local Communities: Evidence from a Peruvian Gold Mine.” American Economic Journal: Economic Policy 5(2):1–25.

   OpenUrl
6. ↵
   1. Bartik, A.W.,
   2. J. Currie,
   3. M. Greenstone, and
   4. C.R. Knittel

   . 2019. “The Local Economic and Welfare Consequences of Hydraulic Fracturing.” American Economic Journal: Applied Economics 11(4):105–55.

   OpenUrl
7. ↵
   1. Baumeister, C., and
   2. L. Kilian

   . 2016. “Forty Years of Oil Price Fluctuations: Why the Price of Oil May Still Surprise Us.” Journal of Economic Perspectives 30(1):139–60.

   OpenUrl
8. ↵
   1. Begley, J., and
   2. S. Chan

   . 2018. “The Effect of Housing Wealth Shocks on Work and Retirement Decisions.” Regional Science and Urban Economics 73(C):180–95.

   OpenUrl
9. ↵
   1. Black, D.,
   2. T. McKinnish, and
   3. S. Sanders

   . 2005a. “The Economic Impact of the Coal Boom and Bust.” Economic Journal 115(April):449–76.

   OpenUrl
10. ↵
    1. Black, D.,
    2. T. McKinnish, and
    3. S. Sanders

    . 2005b. “Tight Labor Markets and the Demand for Education: Evidence from the Coal Boom and Bust.” Industrial and Labor Relations Review 59(1):3–16.

    OpenUrlCrossRef
11. ↵
    1. Boomhower, J.

    2019. “Drilling like There’s No Tomorrow: Bankruptcy, Insurance, and Environmental Risk.” American Economic Review 109(2):391–426.

    OpenUrl
12. ↵
    1. Brown, J.P.

    2021. “Response of Consumer Debt to Income Shocks: The Case of Energy Booms and Busts.” Journal of Money, Credit and Banking 53(7):1629–75.

    OpenUrl
13. ↵
    1. Brown, J.P.,
    2. T. Fitzgerald, and
    3. J.G. Weber

    . 2016. “Capturing Rents from Natural Resource Abundance: Private Royalties from U.S. Onshore Oil and Gas Production.” Resource and Energy Economics 46:23–38.

    OpenUrl
14. ↵
    1. Caliendo, F.N.,
    2. M. Casanova,
    3. A. Gorry, and
    4. S. Slavov

    . 2016. “The Welfare Cost of Retirement Uncertainty.” NBER Working Paper 22609. Cambridge, MA: NBER.
15. ↵
    1. Carrington, W.J.

    1996. “The Alaskan Labor Market during the Pipeline Era.” Journal of Political Economy 104(1):186–218.

    OpenUrlCrossRef
16. ↵
    1. Caselli, F., and
    2. G. Michaels

    . 2013. “Do Oil Windfalls Improve Living Standards? Evidence from Brazil.” American Economic Journal: Applied Economics (5)1:208–38.

    OpenUrl
17. ↵
    1. Charles, K.K.,
    2. E. Hurst, and
    3. M.J. Notowidigdo

    . 2018. “Housing Booms and Busts, Labor Market Opportunities, and College Attendance.” American Economic Review 108(10):2947–94.

    OpenUrl
18. ↵
    1. Clay, K., and
    2. M. Portnykh

    . 2018. “The Short-Run and Long-Run Effects of Resources on Economic Outcomes: Evidence from the United States 1936–2015.” NBER Working Paper 24695. Cambridge, MA: NBER.
19. ↵
    1. Coile, C.

    2015. “Economic Determinants of Workers’ Retirement Decisions.” Journal of Economic Surveys 29(4):830–53.

    OpenUrlCrossRef
20. ↵
    1. Coile, C.C., and
    2. P.B. Levine

    . 2007. “Labor Market Shocks and Retirement: Do Government Programs Matter?” Journal of Public Economics 91(10):1902–19.

    OpenUrlCrossRefWeb of Science
21. ↵
    1. Cotet, A.M., and
    2. K. Tsui

    . 2013. “Oil, Growth, and Health: What Does the Cross-Country Evidence Really Show.” Scandinavian Journal of Economics 115(4):1107–37.

    OpenUrl
22. ↵
    1. Deacon, R.

    2011. “The Political Economy of the Natural Resource Curse: A Survey of Theory and Evidence.” Foundations and Trends in Microeconomics 7(2):111–208.

    OpenUrl
23. ↵
    1. Farah, N.

    2019. “The Effects of Hydraulic Fracturing on Agricultural Productivity.” Unpublished.
24. ↵
    1. Feyrer, J.,
    2. E.T. Mansur, and
    3. B. Sacerdote

    . 2017. “Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution.” American Economic Review 107(4):1313–34.

    OpenUrl
25. ↵
    1. Gilmore, J.S.

    1976. “Boomtowns May Hinder Energy Resource Development.” Science 191(4227):535–40.

    OpenUrlFREE Full Text
26. ↵
    1. Goda, G.S.,
    2. J.B. Shoven, and
    3. S.N. Slavov

    . 2011. “What Explains Changes in Retirement Plans during the Great Recession?” American Economic Review: Papers and Proceedings 101(3): 29–34.

    OpenUrlCrossRefWeb of Science
27. ↵
    1. Gorry, A.,
    2. D. Gorry, and
    3. S.N. Slavov

    . 2018. “Does Retirement Improve Health and Life Satisfaction?” Health Economics 27(12):2067–86.

    OpenUrl
28. ↵
    1. Gousaka, E., and
    2. R. Schoeni

    . 2007. “Comparing Estimates of Family Income in the PSID and the March Current Population Survey 1968–2005.” Technical Series Paper 07-01. Ann Arbor, MI: Institute for Social Research, University of Michigan.
29. ↵
    1. Guettabi, M., and
    2. A. James

    . 2020. “Who Benefits From an Oil Boom? Evidence from a Unique Alaskan Data Set.” Resource and Energy Economics 62:101200.

    OpenUrl
30. ↵
    1. Hausman, C., and
    2. R. Kellogg

    . 2015. “Welfare and Distributional Implications of Shale Gas.” Brookings Papers on Economic Activity 2015(Spring):71–125.

    OpenUrl
31. ↵
    1. Hill, M.

    1991. The Panel Study of Income Dynamics: A User’s Guide. Volume 2. Thousand Oaks, CA: Sage Publishers.
32. ↵
    1. Hombert, J., and
    2. A. Matray

    . 2019. “Technology Boom, Labor Reallocation, and Human Capital Depreciation.” HEC Paris Research Paper FIN-2018-1294. Jouy-en-Josas, France: HEC Paris.
33. ↵
    1. Hoynes, H.,
    2. D.W. Schanzenbach, and
    3. D. Almond

    . 2016. “Long Run Impacts of Childhood Access to the Safety Net.” American Economic Review 106(4):903–34.

    OpenUrl
34. ↵
    1. Jackson, C.K.,
    2. R.C. Johnson, and
    3. C. Persico

    . 2016. “The Effects of School Spending on Educational and Economic Outcomes: Evidence from School Finance Reforms.” Quarterly Journal of Economics 131(1):157–218.

    OpenUrlCrossRef
35. ↵
    1. Jacobsen, G.D.

    2019a. “The Impact of Energy Booms on Local Workers.” IZA World of Labor 468:1–10.

    OpenUrl
36. ↵
    1. Jacobsen, G.D.

    2019b. “Who Wins in an Energy Boom? Evidence from Wage Rates and Housing.” Economic Inquiry 57(1):9–32.

    OpenUrl
37. ↵
    1. Jacobsen, G.D., and
    2. D.P. Parker

    . 2016. “The Economic Aftermath of Resource Booms: Evidence from Boomtowns in the American West.” Economic Journal 126(593):1092–128.

    OpenUrl
38. ↵
    1. Jacobsen, Grant,
    2. Dominic Parker, and
    3. Justin Winikoff

    . 2021. “Are Resource Booms a Blessing or a Curse? Evidence from People (Not Places).” Ann Arbor, MI: ICPSR. https://doi.org/10.3886/E130701V1
39. ↵
    1. James, A.

    2015. “US State Fiscal Policy and Natural Resources.” American Economic Journal: Economic Policy 7(3):238–57.

    OpenUrl
40. ↵
    1. James, A., and
    2. D. Aadland

    . 2011. “The Curse of Natural Resources: An Empirical Investigation of U.S. Counties.” Resource and Energy Economics 33:440–53.

    OpenUrlCrossRefWeb of Science
41. 1. James, A., and
    2. B. Smith

    . 2017. “There Will Be Blood: Crime Rates in Shale Rich U.S. Counties.” Journal of Environmental Economics and Management 84:125–52.

    OpenUrl
42. ↵
    1. James, A., and
    2. B. Smith

    . 2020. “Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution: Comment.” American Economic Review 110(6):1905–13.

    OpenUrl
43. ↵
    1. Kearney, M.S., and
    2. R. Wilson

    . 2018. “Male Earnings, Marriageable Men, and Non-Marital Fertility: Evidence from the Fracking Boom.” Review of Economics and Statistics 100(4): 678–90.

    OpenUrl
44. 1. Kleibergen, F., and
    2. R. Paap

    . 2006. “Generalized Reduced Rank Tests Using the Singular Value Decomposition.” Journal of Econometrics 133(1):97–126.

    OpenUrlCrossRefWeb of Science
45. ↵
    1. Klein, M.C.

    2016. “Recalling the Oklahoma and Texas Housing Bust of the Mid-1980s.” Financial Times, September. https://www.ft.com/content/38ca5231-4779-335c-bf61-a46b775a7c9a (accessed August 23, 2022).
46. ↵
    1. Kniesner, T.J.,
    2. W.K. Viscusi,
    3. C. Woock, and
    4. J.P. Ziliak

    . 2012. “The Value of a Statistical Life: Evidence from Panel Data.” Review of Economics and Statistics 94(1):74–87.

    OpenUrlCrossRef
47. ↵
    1. Kumar, A.

    2017. “Impact of Oil Booms and Busts on Human Capital Investment in the USA.” Empirical Economics 52(3):1089–114.

    OpenUrl
48. ↵
    1. Lilliard, L.A., and
    2. C.W.A. Panis

    . 1998. “Panel Attrition from the Panel Income Study of Income Dynamics: Household Income, Marital Status, and Mortality.” Journal of Human Resources 33(2):437–57.

    OpenUrlCrossRefWeb of Science
49. ↵
    1. Maniloff, P., and
    2. R. Mastromonaco

    . 2017. “The Local Employment Impacts of Fracking: A National Study.” Resource and Energy Economics 49(C):62–85.

    OpenUrl
50. ↵
    1. Marchand, J.

    2012. “Local Labor Market Impacts of Energy Boom-Bust-Boom in Western Canada.” Journal of Urban Economics 71:165–74.

    OpenUrlCrossRef
51. ↵
    1. Marchand, J., and
    2. J. Weber

    . 2017. “Local Labor Markets and Natural Resources: A Synthesis of the Literature.” Journal of Economic Surveys 32(2):469–90.

    OpenUrl
52. ↵
    1. Mason, C.F.,
    2. L.A. Muehlenbachs, and
    3. S.M. Olmstead

    . 2015. “The Economics of Shale Gas Development.” Annual Review of Resource Economics 7(1):269–89.

    OpenUrl
53. ↵
    1. McFall, B.H.

    2011. “Crash and Wait? The Impact of the Great Recession on the Retirement Plans of Older Americans.” American Economic Review: Papers and Proceedings 101(3):40–44.

    OpenUrlCrossRefWeb of Science
54. ↵
    1. Meyer, B.D.

    1995. “Natural and Quasi-Experiments in Economics.” Journal of Business & Economic Statistics 13:151–161.

    OpenUrl
55. ↵
    1. Michaels, G.

    2011. “The Long Term Consequences of Resource-Based Specialization.” Economic Journal 121(551):31–57.

    OpenUrl
56. ↵
    1. Papyrakis, E., and
    2. R. Gerlagh

    . 2007. “Resource Abundance and Economic Growth in the United States.” European Economic Review 51:1011–39.

    OpenUrlCrossRefWeb of Science
57. ↵
    1. Ruggles, S.,
    2. S. Flood,
    3. R. Goeken,
    4. J. Grover,
    5. E, Meyer,
    6. J. Pacas, and
    7. M. Sobek

    . 2019. “IPUMS USA: Version 9.0 [data set].” Minneapolis, MN: IPUMS.
58. ↵
    1. Sachs, J.D., and
    2. A.M. Warner

    . 1995. “Natural Resource Abundance and Economic Growth.” NBER Working Paper 5398. Cambridge, MA: NBER.
59. ↵
    1. Sanderson, E., and
    2. F. Windmeijer

    . 2016. “A Weak Instrument F-test in Linear IV Models with Multiple Endogenous Variables.” Journal of Econometrics 190(2):212–21.

    OpenUrlPubMed
60. ↵
    1. Smith, M.D.,
    2. R.S. Krannich, and
    3. L.M. Hunter

    . 2001. “Growth, Decline, Stability, and Disruption: A Longitudinal Analysis of Social Well-Being in four Western Rural Communities.” Rural Sociology 66(3):425–50.

    OpenUrlWeb of Science
61. ↵
    1. U.S. Bureau of Labor Statistics

    . 2015. “Labor Force Projections to 2024: The Labor Force is Growing, but Slowly.” Monthly Labor Review, December. https://www.bls.gov/opub/mlr/2015/article/labor-force-projections-to-2024.htm (accessed August 18, 2022).
62. ↵
    1. U.S. Bureau of Labor Statistics

    . 2018. “Labor Force Participation and Employment Rates Declining for Prime-Age Men and Women.” Monthly Labor Review, https://www.bls.gov/opub/mlr/2018/beyond-bls/labor-force-participation-and-employment-rates-declining-for-prime-age-men-and-women.htm (accessed August 23, 2022).
63. ↵
    1. U.S. Bureau of Labor Statistics

    . 2019a. “Labor Force Statistics from the Current Population Survey.” https://data.bls.gov/timeseries/LNS12000000 (accessed August 18, 2022).
64. ↵
    1. U.S. Bureau of Labor Statistics

    . 2019b. “Oil and Gas Extraction: NAICS 2011.” https://www.bls.gov/iag/tgs/iag211.htm (accessed August 18, 2022).
65. ↵
    1. U.S. Energy Information Administration

    . 2018. “U.S. Crude Oil Exploratory and Developmental Wells Drilled.” https://www.eia.gov/dnav/ng/hist/e_ertwo_xwc0_nus_cA.htm (accessed August 18, 2022).
66. ↵
    1. U.S. Energy Information Administration

    . 2019. “U.S. Crude Oil First Purchase Price.” https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=f000000__3&f=a (accessed August 18, 2022).
67. ↵
    1. van der Ploeg, F.

    2011. “Natural Resources: Curse or Blessing?” Journal of Economic Literature 49(2):366–420.

    OpenUrlCrossRef
68. ↵
    1. van der Ploeg, F., and
    2. S. Poelhekke

    . 2009. “Volatility and the Natural Resource Curse.” Oxford Economic Papers 61:727–60.

    OpenUrlCrossRef
69. ↵
    1. van der Ploeg, F., and
    2. S. Poelhekke

    . 2017. “The Impact of Natural Resources: Survey of Quantitative Evidence.” Journal of Development Studies 53(2):205–16.

    OpenUrl
70. ↵
    1. Venables, A.

    2016. “Using Natural Resources for Development: Why Has It Proven So Difficult?” Journal of Economic Perspectives 30(1):161–84.

    OpenUrlCrossRef
71. ↵
    1. Weaver, K.F.

    1981. “America’s Thirst for Imported Oil: Our Energy Predicament.” National Geographic, February, p. 2–23.
72. ↵
    1. Weber, J.

    2012. “The Effects of a Natural Gas Boom on Employment and Income in Colorado.” Energy Economics 34:1580–88.

    OpenUrlCrossRefWeb of Science
73. ↵
    1. Wilson, R.

    2022. “Moving to Economic Opportunity: The Migration Response to the Fracking Boom.” Journal of Human Resources 57(3):918–55.

    OpenUrlAbstract/FREE Full Text
74. ↵
    1. Winters, J.V.,
    2. Z. Cai,
    3. K. Maguire, and
    4. S. Sengupta

    . 2019. “Do Workers Benefit from Resource Booms in Their Home State? Evidence from the Fracking Era.” GLO Discussion Paper 400.
75. ↵
    1. Yi, K., and
    2. J. Zhang

    . 2016. “Real Interest Rates over the Long Run. Federal Reserve Bank of Minneapolis.” Economic Policy Paper 16-10.