Countercyclical policy and the speed of recovery after recessions
Laura E. Jackson and
Michael Owyang ()
Authors registered in the RePEc Author Service: Laura Jackson and
Laura Jackson Young ()
No 2013-032, Working Papers from Federal Reserve Bank of St. Louis
We consider the effect of some policies intended to shorten recessions and accelerate recoveries. Our innovation is to analyze the duration of the recoveries of various U.S. states, which gives us a cross-section of both state- and national-level policies. Because we study multiple recessions for the same state and multiple states for the same recession, we can control for differences in the economic conditions preceding recessions and the causes of the recessions when evaluating various policies. We find that expansionary monetary policy at the national level helps to stimulate the exit of individual states from recession. We find that exogenous measures of decreases in taxes or targeted increases in federal spending reduce recovery times for state-recessions. We also find ambient economic conditions can extend expected recovery times: other states in the same region suffering from recession around the same time, the length of the preceding recession, and increases in oil prices.
Keywords: business cycles; survival analysis; variable selection (search for similar items in EconPapers)
JEL-codes: C23 E32 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2013, Revised 2014-01-01
New Economics Papers: this item is included in nep-cba and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://research.stlouisfed.org/wp/2013/2013-032.pdf http://dx.doi.org/10.20955/wp.2013.032 (application/pdf)
Journal Article: Countercyclical Policy and the Speed of Recovery after Recessions (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlwp:2013-032
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 ().