Uncertainty and the geography of the great recession

Daniel Shoag and Stan Veuger

Journal of Monetary Economics, 2016, vol. 84, issue C, 84-93

Abstract: 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.

Keywords: Great recession; State government; Uncertainty; Unemployment (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (41)

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Related works:
Working Paper: Uncertainty and the Geography of the Great Recession (2015)
Working Paper: Uncertainty and the geography of the Great Recession (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:84:y:2016:i:c:p:84-93

DOI: 10.1016/j.jmoneco.2016.11.002

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