Geographical and Sectoral Shocks in the U.S. Business Cycle / Atish R. Ghosh, Holger C. Wolf.

Format:

Book

Author/Creator:

Ghosh, Atish R.

Contributor:

National Bureau of Economic Research.

Wolf, Holger C.

Series:

Working Paper Series (National Bureau of Economic Research) no. w6180.

NBER working paper series no. w6180

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1997.

Summary:

We examine whether the aggregate U.S. business cycle is driven mainly by geographical" shocks (affecting all sectors within a state), or by sectoral shocks (affecting the same sector in all" states). We find that, at the level of an individual sector in an individual state growth are driven by the sector, not by the state: textiles in Texas moves more with textiles" elsewhere in the U.S. than with other sectors in Texas. But shocks to sector growth rates exhibit" a lower correlation across sectors compared to the correlation of shocks to state growth rates" across states. As a result, geographical shocks gain greater importance at higher levels of" aggregation. Finally, we find that changes in the volatility of the aggregate U.S. business cycle" reflect, to a roughly comparable degree, both changes in the volatility of state and sector business" cycles, and changes in their correlation across sectors and states.

Notes:

Print version record

September 1997.