The Geography of the Great Recession

30 Pages Posted: 13 Oct 2012 Last revised: 29 May 2021

See all articles by Enoch Hill

Enoch Hill

Wheaton College; University of Minnesota - Twin Cities - Department of Economics

Alessandra Fogli

Federal Reserve Bank of Minneapolis

Fabrizio Perri

Federal Reserve Banks - Federal Reserve Bank of Minneapolis

Date Written: October 2012

Abstract

This paper documents, using county level data, some geographical features of the US business cycle over the past 30 years, with particular focus on the Great Recession. It shows that county level unemployment rates are spatially dispersed and spatially correlated, and documents how these characteristics evolve during recessions. It then shows that some of these features of county data can be generated by a model which includes simple channels of transmission of economic conditions from a county to its neighbors. The model suggests that these local channels are quantitatively important for the amplification/muting of aggregate shocks.

Suggested Citation

Hill, Enoch and Fogli, Alessandra and Perri, Fabrizio, The Geography of the Great Recession (October 2012). NBER Working Paper No. w18447, Available at SSRN: https://ssrn.com/abstract=2161194

Enoch Hill (Contact Author)

Wheaton College ( email )

501 College Ave
Wheaton, IL 60187
United States
6307525315 (Phone)

University of Minnesota - Twin Cities - Department of Economics ( email )

271 19th Avenue South
Minneapolis, MN 55455
United States

Alessandra Fogli

Federal Reserve Bank of Minneapolis ( email )

90 Hennepin Avenue
Minneapolis, MN 55480
United States

Fabrizio Perri

Federal Reserve Banks - Federal Reserve Bank of Minneapolis ( email )

90 Hennepin Avenue
Minneapolis, MN 55480
United States

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