| The Oil Business and Real Per Capita Gross State Product (GSP) in Texas, 1977-2007* |
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Per capita gross state product (GSP) describes the value of a state's total economic output per person. The Texas oil boom of the 1970s and early 1980s drove per capita economic output in Texas well above the national average. But per capita GSP in Texas crashed with the oil bust of the mid to late 1980s. Since then productive output in the Texas economy has closely tracked output elsewhere across the nation. |
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Source: Bureau of Economic Analysis; Census Bureau. (full source, footnote) |
Full Source: Data is from the Bureau of Economic Analysis, Department of
Commerce, available at http://www.bea.gov/bea/regional/gsp/default.htm,
last accessed 23 July 2008. A gross domestic product (gdp)
price deflator was used to convert current to constant dollar amounts in year
2000 dollars. The deflator used is from the 2008 Budget of the U.S.
Government at http://www.gpoaccess.gov/usbudget/fy08/hist.html, Table
10.1 Gross Domestic Product and Deflators Used in the Historical
Tables: 1940-2009, last accessed 23 July 2008. Population figures used in
calculating per capita values are from the the Census Bureau republished
by the Texas State Library at http://www.tsl.state.tx.us/ref/abouttx/census.html, last accessed 23 July
2008.
Full Footnote: Gross state product (GSP) is a measure of the total economic output of a state just as gross domestic product (GDP) is a measure of the total domestic economic output of the nation. To meaningfully compare Texas GSP in one year with any other year the effects of relative price changes year to year (i.e., inflation) were removed using a GDP deflator (the consumer price index can be used to make a similar adjustment). Constant dollar GSP was then divided by state population to produce a per capita measure permitting comparison among the states.
Full Footnote: Gross state product (GSP) is a measure of the total economic output of a state just as gross domestic product (GDP) is a measure of the total domestic economic output of the nation. To meaningfully compare Texas GSP in one year with any other year the effects of relative price changes year to year (i.e., inflation) were removed using a GDP deflator (the consumer price index can be used to make a similar adjustment). Constant dollar GSP was then divided by state population to produce a per capita measure permitting comparison among the states.