EPRINC and Macroeconomic Advisers are undertaking an assessment of the broad consequences to U.S. investment and economic growth from the rapid decline in oil prices.
The attached paper by Joel Prakken of Macroeconomic Advisers examines two important forces at work from the oil price decline — the expansion of the national economy and the concurrent reduction in investment in oil and gas extraction. The report concludes that the U.S. will likely see an expansion of economic growth, but it is attenuated by about one-third from lower investment in the U.S. petroleum industry.
