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

The recent boom and bust in the US oil and natural gas sector provide a unique opportunity to assess whether the impacts of energy development are symmetric across the differing phases of the energy cycle. This study uses the synthetic control method to examine the boom and bust effects for the four most oil and gas dominated states: Louisiana, North Dakota, Oklahoma and Wyoming. The four states are chosen as case studies because of their status as top oil and gas producers and the stronger influence of the oil and gas sector on their overall economies. The results reveal differing employment impacts across the four states in both the short and long run and asymmetry during the boom and bust phases. Variation in the overall impacts and asymmetry of impacts across the boom-bust cycle are suggested to be at least in part connected to state and local government expenditures.