Boom, Bust, and Regional Growth Rates

Bibliographic Data

ID12438431
AuthorsWilliam Spelman (0000-0003-2388-3603, The University of Texas at Austin, corresponding author)
Year2008
Volume44
Issue4
Pages588-604
Publication date2008-02-20
Open AccessYes
TypeARTICLE
VenueUrban Affairs Review (JOURNAL)
Journal identifiersISSN: 1078-0874 • E-ISSN: 1552-8332
PublisherSAGE Publishing (PUBLISHER • US)
DOI10.1177/1078087408323702
OpenAlexW2054861395
LanguageEN
References cited23

If the primary effect of economic volatility is on consumption—requiring consumers to smooth over the rough spots—recent studies have shown that the business cycle has relatively little effect on consumer welfare. However, the primary effect of volatility may not be on consumption but on investment and productivity. If investors shift their money from volatile cities and times to stable ones, or if productivity depends on predictable demand and a stable work-force, volatility may hinder urban growth. Analysis of annual growth rates in U.S. metropolitan areas shows that short-term volatility reduced growth substantially and that these effects were larger in cities with high long-term volatility. In most metropolitan areas, volatility reduction and growth enhancement efforts would provide roughly equal improvements in consumer utility

Boom · Business cycle · Bust · Econometrics · Economics · Geography · Macroeconomics · Market economy · Metropolitan area · Monetary economics · Volatility (finance · Welfare · Housing Market and Economics · Market Dynamics and Volatility · Monetary Policy and Economic Impact

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