Uncertainty and the geography of the great recession

• 成果类型: Article
• 署名作者: Shoag, Daniel; Veuger, Stan
• 署名单位: Harvard University; American Enterprise Institute for Public Policy Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2016.11.002
• 发表日期: 2016
• 页码: 84-93
• 关键词: Great recession; State government; uncertainty; unemployment

摘要

The variation in a state-level measure of local economic-policy uncertainty during the 2007-2009 recession matches the cross-sectional distribution of unemployment outcomes in this period. This relationship is robust to numerous controls for other determinants of labor market outcomes. Using preexisting state institutions that amplified uncertainty, we find evidence that this type of local uncertainty played a causal role in increasing unemployment. Together, these results suggest that increased uncertainty contributed to the severity of the Great Recession. (C) 2016 Elsevier B.V. All rights reserved.