The general equilibrium effects of the shale revolution
The shale revolution is gradually transforming the industrial structure of the United States. This paper quantifies these changes in a model in which industries are linked by productivity linkages. In this framework, productivity gains in one industry may spill over to other industries. For 2015 (th...
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| Main Author: | |
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| Format: | Book/Monograph |
| Language: | English |
| Published: |
Heidelberg
Heidelberg University, Department of Economics
[2020]
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| Series: | AWI discussion paper series
no. 694 (November 2020) |
| In: |
AWI discussion paper series (no. 694 (November 2020))
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| Online Access: | Verlag, kostenfrei: https://www.uni-heidelberg.de/md/awi/forschung/dp694_eife.pdf Resolving-System, kostenfrei: http://hdl.handle.net/10419/235017 
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| Author Notes: | Thomas Eife |
| Summary: | The shale revolution is gradually transforming the industrial structure of the United States. This paper quantifies these changes in a model in which industries are linked by productivity linkages. In this framework, productivity gains in one industry may spill over to other industries. For 2015 (the most recent data available), we find that the shale revolution raised US relative wages by around 0.84 percent, whereas Mexican and Canadian wages declined by 1.12 and 1.43 percent, respectively. Judging by countries' ability to sell goods to the US, China is the main beneficiary of the shale revolution with increased US exports of more than $14 billion (7 percent) in 2015. At the same time, the US automobile industry lost sales of more than $65 billion (almost 10 percent) because of the shale revolution. |
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| Physical Description: | Online Resource |