Premium
The State‐Level Impact of Uncertainty Shocks
Author(s) -
MUMTAZ HAROON,
SUNDERPLASSMANN LAURA,
THEOPHILOPOULOU ANGELIKI
Publication year - 2018
Publication title -
journal of money, credit and banking
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.763
H-Index - 108
eISSN - 1538-4616
pISSN - 0022-2879
DOI - 10.1111/jmcb.12509
Subject(s) - economics , market share , monetary economics , state (computer science) , contrast (vision) , labour economics , finance , algorithm , computer science , artificial intelligence
Abstract 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.