What goes up must come down? The recent economic cycles of the four most oil and gas dominated states in the US

Impact of Marcellus and Utica shale exploitation on Ohio, Pennsylvania, and West Virginia Regional Economies: A synthetic control analysis

“…We apply the weight matrix to each corresponding outcome indicator and calculate their synthetic outcomes to obtain the SCM estimates of the shale effect. Before delving into the detailed estimation results, we follow Rickman and Wang (2020) to compare the synthetic control matching quality against the 27‐ANC average in the donor pool, which is akin to the unweighted DiD. We calculate: (i) the difference between the synthetic and actual values of the treated ANC; and (ii) the difference between the 27‐ANC average value and the actual value of the treated ANC.…”

“…Previous studies suggest that the SCM results are not sensitive to small changes in the treatment year (Munasib & Rickman, 2015; Rickman et al, 2017). For the donor pool, we start with the 30 non‐energy states used in Rickman and Wang (2020) minus Ohio. We then remove New Jersey and Rhode Island from the donor pool because of the absence of non‐metropolitan counties in these states.…”

“…In the late 1990s, the oil and gas industry in the United States began to combine horizontal drilling and hydraulic fracturing techniques for commercial drilling in the Barnett shale play across the south‐central states (Jacquet et al, 2018). Employment in the oil and gas sector started to rise in the early 2000s (Rickman & Wang, 2020), with the production from shale plays in Colorado, Texas, and Wyoming underwent significant increases in subsequent years (Weber, 2012). Not long after the initial success in the south‐central US, the first natural gas well was drilled in the Marcellus play, which underlies parts of New York, Pennsylvania, Ohio, West Virginia, Maryland, and Virginia (IER, 2012).…”

“…We consider several metrics, including employment growth, income growth, poverty rate, and population growth in OH, PA, and WV. Furthermore, we evaluate if the three states suffered from the 2014–2016 energy price decline and industry bust found in Rickman and Wang (2020) for Louisiana, North Dakota, Oklahoma and Wyoming.…”

Price Effects of the Austrian Fuel Price Fixing Act: A Synthetic Control Study

“…Furthermore, it allows the effect of the fuel price intervention to vary over time. Since its conception, the SCM has been applied in numerous studies across a variety of disciplines evaluating, for example, the effects of health policy (Bauhoff, 2014;Kreif et al, 2016), immigration policy (Bohn et al, 2014), crime (Pinotti, 2015), and, more recently, energy policy (Rickman et al, 2017;Rickman and Wang, 2020;Jardón et al, 2020).…”