Asymmetric shocks among U.S. states

Marco Del Negro

No 9903, Working Papers from Centro de Investigacion Economica, ITAM

Abstract: The paper uses a factor analysis model to study co-movements in non-durable consumption and output among the fifty U.S. states from 1969 to 1995. The paper finds that asymmetric shocks in output are, on average, large, i.e., of the same magnitude of U.S. business cycle fluctuations. Regional business cycles and state-specific shocks are equally important sources of asymmetries in output. Asymmetric shocks in consumption, excluding disturbances due to measurement error, are, on average, as large as asymmetric shocks to output, suggesting a lack of inter-state smoothing.

Keywords: Intranational business cycles; Risk sharing; Factor analysis (search for similar items in EconPapers)
JEL-codes: E20 E32 F36 (search for similar items in EconPapers)
Pages: 36 pages
Date: 1999-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://ftp.itam.mx/pub/academico/inves/delnegro/9903.pdf First version, 1999 (application/pdf)

Related works:
Journal Article: Asymmetric shocks among U.S. states (2002)
Working Paper: Asymmetric shocks among U.S. states (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:cie:wpaper:9903

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