According to recent assessments, the United States has considerably more recoverable natural gas in shale formations than was previously thought. Such a development raises expectations that U.S. energy consumption will shift toward natural gas. To examine how the apparent abundance of natural...

Oil price shocks are thought to have played a prominent role in U.S. economic activity. In this paper, we employ Bayesian methods with a dynamic stochastic general equilibrium model of world economic activity to identify the various sources of oil price shocks and economic fluctuation and to...