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Economic shocks and growth: Spatio-temporal perspectives on Europe's economies in a time of crisis.
- Source :
-
Papers in Regional Science . Nov2014 Supplement, Vol. 93, pS137-S165. 29p. - Publication Year :
- 2014
-
Abstract
- The response by regional and national economies to exogenous impulses has a well-established literature in both spatial econometrics and in mainstream econometrics and is of considerable importance given the post-2007 economic crisis, which is characterized by a period of severe global instability resulting from unprecedented economic shocks. This paper focuses on dynamic counterfactual predictions and impulse-response functions derived from appropriate econometric models. These provide insight regarding the question of whether responses to economic shocks are transitory or whether they have a permanent effect. Analysis shows that output shocks have had permanent effects on productivity so that economies have tended not to return to the pre-shock path but rather adjust to new levels. This suggests that the current recession will be embodied permanently within the memory of some of Europe's leading economies as a hysteretic effect. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 10568190
- Volume :
- 93
- Database :
- Academic Search Index
- Journal :
- Papers in Regional Science
- Publication Type :
- Academic Journal
- Accession number :
- 99708367
- Full Text :
- https://doi.org/10.1111/pirs.12048