Product Description
by Marie Howland (Author), U. S. Dept of Housing and Urban Developm (Created by)
There are wide variations in the severity with which regions experience national recessions (Borts 1960], Browne 1978], Freidenberg and Bretzfelder 1980], Gellner 1974], Howland 1979,1981], SUQ and Rush (1975]). This paper presents and tests an econometric model to explain these cross-regional differences in cyclical behavior. The model, based on export base theory, is tested with state-level data from the five post-World War II recessions between 1950 and 1975. The findings suggest that cross-state differences in the industry mix of exports, capital-labor ratios, age of manufacturing capital stocks, levels of unemployment insurance benefits, unionization of labor forces, and multiplier impacts on the residentiary sector of the economy explain cross-state differences in the severity of state recessions.
