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Board of Governors of the Federal Reserve System (U.S.)
International Finance Discussion Papers
The Energy Boom and Manufacturing in the United States
William R. Melick
Abstract

This paper examines the response of U.S. manufacturers to changes in competitiveness brought about by movements in the price of natural gas. I estimate the response of various measures of manufacturing activity using panel regression methods across roughly 80 industries that allow each industry's response to vary with its energy intensity. These estimates suggest that the fall in the price of natural gas since 2006 is associated with a 2 to 3 percent increase in activity for the entire manufacturing sector, with much larger effects of 30 percent or more for the most energy intensive industries.


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William R. Melick, The Energy Boom and Manufacturing in the United States, Board of Governors of the Federal Reserve System (U.S.), International Finance Discussion Papers 1108, 06 Jun 2014.
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Keywords: Manufacturing; natural gas
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