EconPapers    
Economics at your fingertips  
 

States and the business cycle

Michael Owyang (), David E. Rapach and Howard Wall ()

No 2007-050, Working Papers from Federal Reserve Bank of St. Louis

Abstract: We model the U.S. business cycle using a dynamic factor model that identifies common factors underlying fluctuations in state-level income and employment growth. We find three such common factors, each of which is associated with a set of factor loadings that indicate the extent to which each state’s business cycle is related to the national business cycle. According to the factor loadings, there is a great deal of heterogeneity in the nature of the links between state and national economies. In addition to exhibiting interesting geographic patterns, the factor loadings tend to be related to differences in industry mix. Finally, we find that the common factors tend to explain large proportions of the total variability in state-level business cycles, although there is a great deal of cross-state heterogeneity.

Keywords: Business; cycles (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Published in Journal of Urban Economics, March 2009, 65(2), pp. 181-94

Downloads: (external link)
http://research.stlouisfed.org/wp/2007/2007-050.pdf (application/pdf)

Related works:
Journal Article: States and the business cycle (2009) Downloads
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:fip:fedlwp:2007-050

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Anna Oates ().

 
Page updated 2019-08-22
Handle: RePEc:fip:fedlwp:2007-050