Impacts of Shocks to U.S. Macroeconomic Variables on the Regional Economy of Georgia

Yongseung Han ()

International Regional Science Review, 2025, vol. 48, issue 2, 210-230

Abstract: This paper develops a way to analyze a regional economy and a large economy within a model. Using structural autoregression with block exogeneity and mutual independence assumptions as well as Cholesky factorization, we quantify the impacts of shocks to U.S. macroeconomic variables on the regional economy of Georgia. We found that the largest impact on Georgia's aggregate variables - consumer prices, real per capita personal income, and total employment - is the federal funds rate. For other shocks, Georgia's personal income is most affected by an increase in commodity prices, while Georgia's consumer prices are most affected by U.S. inflation. At the industry level, we found that the impact of real GDP is the largest and the impact of M2 is the smallest on output and employment in Georgia's industries, although the magnitude of the impact on employment is smaller and more short-lived than on output.

Keywords: regional economy; macroeconomic impact; Georgia; industrial production; employment; personal income; U.S. economy; C51; E10; R10 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/01600176241267235 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:inrsre:v:48:y:2025:i:2:p:210-230

DOI: 10.1177/01600176241267235

Access Statistics for this article

More articles in International Regional Science Review
Bibliographic data for series maintained by SAGE Publications ().