Ten-Gallon Economy

Pia M. Orrenius is Vice President and Senior Economist at the Federal Reserve Bank of Dallas, USA, where she leads the regional group that tracks economic growth and development in the Eleventh District. Orrenius has published extensively on the Texas economy, immigration, and labor markets, and is Executive Editor of the Dallas Fed publication Southwest Economy. Jesús Cañas is Business Economist at the Federal Reserve Bank of Dallas, USA. As member of the regional group he analyzes the regional economy. His research at the Fed also focuses on issues pertaining to the Mexican economy, the U.S.-Mexico border economy, and the maquiladora industry. Cañas has written articles for various Federal Reserve Bank publications and academic journals such as Annals of Regional Science and Growth and Change. Cañas holds a BA in Economics and Finance and an MS in Economics from the University of Texas at El Paso, USA.Michael Weiss is Senior Writer/Editor in the Research Department of the Federal Reserve Bank of Dallas, USA, and edits the quarterly, Southwest Economy. He holds an MBA in Finance from the University of Texas at Arlington, USA, an MS in Journalism from Columbia University, USA, and a BA in Public Affairs from The University of Chicago, USA.Jordana Barton, Federal Reserve Bank of Dallas, USA Roberto Coronado, Federal Reserve Bank of Dallas, USA Marycruz de León, Federal Reserve Bank of Dallas, USA John V. Duca, Federal Reserve Bank of Dallas, USA Christina English, Equal Employment Advisory Council, USA Amy Jordan, Federal Reserve Bank of Dallas, USA Kory Killgo, Federal Reserve Bank of Dallas, USA Anil Kumar, Federal Reserve Bank of Dallas, USA Nicole Lake, Blue Cross Blue Shield, USA Melissa Lopalo, Federal Reserve Bank of Dallas, USA Raquel R. Márques, Federal Reserve Bank of Dallas, USA David Neumark, University of California, Irvine, USA Elizabeth Organ, New York University, USA Emily Ryder Perlmeter, Federal Reserve Bank of Dallas, USA Keith R. Phillips, Federal Reserve Bank of Dallas, USA Michael Plante, Federal Reserve Bank of Dallas, USA Kenneth J. Robinson, Federal Reserve Bank of Dallas, USA Eduardo Saucedo, The University of Texas-Pan American, USA John Saving, Federal Reserve Bank of Dallas, USA Christopher Slijk, Federal Reserve Bank of Dallas, USA Elizabeth Sobel Blum, Federal Reserve Bank of Dallas, USA Marta Tienda, Princeton University, USA Louis Bernardo Torres Ruiz, Texas A&M University, USA Alan D. Viard, American Enterprise Institute, USA Mine K. Yücil, Federal Reserve Bank of Dallas, USA

"Ten-Gallon Economy is a timely volume on the important forces shaping the dynamic Texas economy over the past decade and more. The invited articles touch on the myriad drivers of the state's rapid growth (energy, exports, low taxes), but they also focus on the challenges that need addressing if Texas is to remain vibrant. The volume is not a compendium of Texas boosterism but rather of clear-eyed research and recommendations to assure future economic success for all Texans." - Kathleen Cooper, Director of International Politics and Economics, Tower Center, Southern Methodist University, USA; former Under Secretary for Economic Affairs, US Department of Commerce; Chief Economist, Exxon Mobil Corporation "Rather than providing simply an overview of Texas' 'oil economy,' Ten-Gallon Economy examines the people and socioeconomic conditions as well as the energy and non-energy components of the state's economy in the past, present, and future. This book is a must-read that will be both informative and enlightening for anyone interested in how we got here and the road forward." - Steve Murdock, Allyn and Gladys Cline Professor of Sociology, Rice University, USA; former Director of the US Census Bureau "We have a responsibility to turn our diversity into strength. The effective deployment of human capital has never offered greater promise than it does today. Ten Gallon Economy outlines the choices we face and the rewards we can fully realize only by addressing our growing education needs. We must always evaluate what our real-world options are; change is the one constant. Ten Gallon Economy's research and analysis provides invaluable insight in these challenging times." - Renu Khator, Chancellor, University of Houston, USA

• PART I: INTRODUCTION1. Tipping Our Hats to the Ten-Gallon Economy; Pia M. Orrenius, Jesús Cañas, Michael Weiss PART II: PUBLIC POLICY AND BUSINESS CLIMATE2. Increasing Jobs and Income from Work: The Role and Limitations of Public Policy; David Neumark 3. Why Texas Grows Faster: The Role of Smaller Government; Jason Saving4. The Shortcomings of the Texas Margin Tax; Alan D. ViardPART III: HUMAN CAPITAL AND LABOR MARKETS5. Texas' Education Challenge: A Demographic Dividend or Bust?; Marta Tienda 6. Oil Boom Lowers Human Capital Investment in Texas; Anil Kumar7. Employment Growth and Labor Market Polarization in the U.S. and Texas; Melissa LoPalo, Pia M. OrreniusPART IV: INDUSTRY AND EXPORTS8. Texas Real Estate: From the 1980s' Oil Bust to the Shale Oil Boom; John V. Duca, Michael Weiss, Elizabeth Organ9. The Evolution of Texas Banking; Kory Killgo and Kenneth J. Robinson10. The Impact of Changing Energy Prices on the Texas Economy; Mine K. Yücel, Michael Plante, Amy Jordan, Nicole Lake11. Texas Comparative Advantage and Manufacturing Exports; Jesús Cañas, Luis Bernardo Torres Ruiz, Christina EnglishPART V: BORDER AND ECONOMIC DEVELOPMENT12. So Close to Mexico: Economic Spillovers Along the Texas–Mexico Border; Roberto Coronado, Marycruz De León, Eduardo Saucedo13. Border Economic Recovery Lags Rest of State; Keith R. Phillips and Christopher Slijk 14. Las Colonias Along the Texas–Mexico Border; Jordana Barton, Elizabeth Sobel Blum, Emily Ryder Perlmeter, Raquel R. Márquez