Oddbean

Do US states have different recoveries from economic shocks? ========== A new study by Andrew Fieldhouse and David Munro, along with other researchers, examines the recoveries of US states from economic shocks. The study utilizes a newly developed dataset that shows economic recoveries have become more uniform across states. The researchers find that the migration response to bad shocks has disappeared in recent decades, with employment and unemployment still responding to shocks but without the outmigration that was observed in earlier postwar decades. The study also reveals that states' economies have become more similar over time, with convergence in industrial composition and income per capita. The findings have implications for macroeconomic stabilization policy at the federal level and suggest that regionally targeted policies may need to be reconsidered. The study also highlights the importance of understanding the nature of shocks, as different types of shocks can lead to different recovery patterns. #UsStates #EconomicShocks #Recovery #Migration #Employment #Unemployment #IndustrialComposition #IncomePerCapita #MacroeconomicStabilizationPolicy https://www.brookings.edu/articles/do-us-states-have-different-recoveries-from-economic-shocks/