The State-Level Impact of Uncertainty Shocks
Research output: Contribution to journal › Journal article › Research › peer-review
This paper estimates the impact of uncertainty shocks on real income growth in U.S. states. Our results suggest that the effect is heterogeneous. The magnitude of the decline in income is largest in states with a large share of manufacturing and construction industries, a larger share of small firms, a high fiscal deficit, a less rigid labor market, and a more volatile housing market. In contrast, a higher share of mining industries and larger intergovernmental fiscal transfers ameliorate the impact of uncertainty.
|Journal||Journal of Money, Credit and Banking|
|Publication status||Published - 5 Jun 2018|
- Faculty of Social Sciences - C15,C32, E32, FAVAR, stochastic volatility, uncertainty shocks, regional effects