We provide theoretical and empirical evidence that firms do not in general respond equally to changes in prices and taxes in the setting of oil well drilling in the United States. Our key theoretical contribution is that in a multi-state model, a change in output price changes both the bene t...

This article suggests two methods for deriving a statistical verdict from a null finding, allowing economists to more confidently conclude when "not significant" can in fact be interpreted as "no substantive effect." The proposed methodology can be extended to a variety of empirical contexts...

The recent oil and gas production boom in the contiguous United States generated tens of billions in additional royalty income for owners of oil and gas rights. We use the royalty income shock to study the local multiplier effect of unanticipated income and find that each royalty dollar received...