Oil Dependence and Economic Activity
Setting the stage
Let's quickly look at where this oil decline has left the state
What about Alaska's important economic base?
Why have some states recovered?
Aggregate relationship between oil prices and employment
Where does this leave us?
What else can we say about the relationship between
oil prices and employment?
• We assess how fluctuations in oil prices over the period
from 1991 to 2018 affect monthly employment changes.
• We calculate that a 10% change in oil prices results in a
1.7% change in employment across these oil dependent
states in the long run. For Alaska, using 2018 employment
numbers, that would amount to about 4,515 increase in
jobs as a result of a 10% increase in oil prices.
592
Mouhcine Guettabi, PhD
Oil dependence and economic activityView entire presentation