Final Paper Assignment: I-O Model and Background

Final Paper
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I] I-O model and background
Assessing the economic impact of the oil industry in the economy of Texas requires information on interdependencies in the regional economy. With oil and gas price being on long term low in the last three years, the effect of a slowdown in the oil and gas industry is reverberated across the region. Similarly, an improving market provides better opportunities for the oil and gas producers and affects consumer confidence in the region. Expenditures in the part of oil and gas producers, and the governments are accessible through published data, and they are helpful to evaluate the impact of the industry on the regional economy. The researchers further expanded on the application of the input-output analysis after Leontief. The I-O model highlights the impact of industry (ies) on the economy with emphasis on the economic indicators an implemented by evaluating changes in the economy after spending by the oil companies. Determining the direct, indirect and induced effect of the oil and gas industry would provide clues on interdependence of the other sectors and contribution of each to the GDP. The main direct effect is employment in the industry and this affects the income levels and revenue. The income and consumption multipliers are related through interdependencies linking the various economic sectors. This is an impact analysis on the effect of the oil and gas industry in Texas.
Crude oil production figures
Source keyMCRFPTX1YearTexas Field Production of Crude Oil (Thousand Barrels)2010426666201152884420127221302013925024201411581662015126358520161176072
 HYPERLINK "http://tonto.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPTX1&f=A" http://tonto.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPTX1&f=A
Month Texas Field Production of Crude Oil (Thousand Barrels)Jan-201610...