K. Phillips, Raul Hernandez, Benjamin R. M. Scheiner
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A closer look at potential distortions in state real gross domestic product: The case of the Texas energy sector
In this paper we take a closer look at a potential flaw in the measurement of Texas Real Gross Domestic Product (RGDP) – value added in the oil and gas industry. BEA estimates of Texas RGDP in oil and gas extraction have a negative correlation with factors of production and units of output. In this paper we use several different approximations of RGDP in oil and gas extraction to see which seems to be a good substitute for the BEA estimates. We find that a measure based on changes in Texas physical production of oil and gas results in an estimate of total state RGDP that is more highly correlated with Texas job growth and closer to the correlation of these measures nationally. This adjusted measure of Texas RGDP should be a better measure of Texas economic performance.
期刊介绍:
The Journal of Economic and Social Measurement (JESM) is a quarterly journal that is concerned with the investigation of all aspects of production, distribution and use of economic and other societal statistical data, and with the use of computers in that context. JESM publishes articles that consider the statistical methodology of economic and social science measurements. It is concerned with the methods and problems of data distribution, including the design and implementation of data base systems and, more generally, computer software and hardware for distributing and accessing statistical data files. Its focus on computer software also includes the valuation of algorithms and their implementation, assessing the degree to which particular algorithms may yield more or less accurate computed results. It addresses the technical and even legal problems of the collection and use of data, legislation and administrative actions affecting government produced or distributed data files, and similar topics. The journal serves as a forum for the exchange of information and views between data producers and users. In addition, it considers the various uses to which statistical data may be put, particularly to the degree that these uses illustrate or affect the properties of the data. The data considered in JESM are usually economic or social, as mentioned, but this is not a requirement; the editorial policies of JESM do not place a priori restrictions upon the data that might be considered within individual articles. Furthermore, there are no limitations concerning the source of the data.