Memory of recessions

Cross, Rod; McNamara, Hugh; Pokrovskiĭ, A. V.

doi:10.2753/pke0160-3477340302

Cited by 13 publications

(7 citation statements)

References 21 publications

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“…The picture emerging for the UK's productivity path is not unlike Figure d which shows the eventuality where the creative elements of a recession outweigh the destructive elements (Cross et al. ). This may be partly the result from optimistic business expectations, the availability of spare capacity to expand or new firm foundations.…”

Section: Actual and Counterfactual Responses To Shocksmentioning

confidence: 98%

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Economic shocks and growth: Spatio‐temporal perspectives on Europe's economies in a time of crisis

Doran

Fingleton

2014

Papers in Regional Science

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Section: Actual and Counterfactual Responses To Shocksmentioning

confidence: 98%

“…Cross et al. () appeal to a Schumpeterian point of view of creative destruction to explain these hysteresis effects.…”

Section: Hysteresismentioning

confidence: 99%

Economic shocks and growth: Spatio‐temporal perspectives on Europe's economies in a time of crisis

Doran

Fingleton

2014

Papers in Regional Science

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“…It is here that the idea of “hysteresis” assumes relevance. The concept of hysteresis has recently become the subject of renewed interest in economics (see, e.g., Göcke, 2002; Cross, Grinfeld and Lamba, 2009; Cross, Mcnamara and Pokrovskii, 2010; Setterfield, 2010). Mainstream economics now admits of the possibility of multiple equilibria or steady states, and that an economy can be moved from one such equilibrium or domain to another as a result of a shock or disturbance.…”

Section: Regional Reactions To Recessionary Shocks: Resilience Andmentioning

confidence: 99%

Recessionary Shocks and Regional Employment: Evidence on the Resilience of U.K. Regions*

Fingleton

Garretsen²,

Martin

2012

Journal of Regional Science

396

335

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We analyze the resilience of U.K. regions to employment shocks. Two basic notions of resilience are distinguished. With engineering resilience, there is an underlying stable growth path to which a regional economy rebounds following a shock. With ecological resilience, shocks can permanently affect the growth path of the regional economy. Our data set consists of quarterly employment series for 12 U.K. regions (NUTS I) for the period 1971-2010. Using a seemingly unrelated regression (SUR) model specification, we test for the relevance of (engineering) resilience of U.K. regional employment to the four recessionary shocks in our sample. It turns out that U.K. regions do indeed differ in their resilience, but that these differences mainly concern the initial resistance to these shocks and not so much the recovery stage. The SUR model does not allow shocks to have permanent effects and it also does not take the possibility of time differentiated shock spillovers between the 12 regions into account. To this end, we also estimate a vector error-correction model (VECM) specification where employment shocks can have permanent effects and where also interregional employment linkages are included. We find that employment shocks typically have permanent effects when it concerns the own-region effects. Permanent effects can also be found for the impact on other regions but the interregional effects are typically only significant for nearby regions.

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“…Rigid informal institutions can also stymie entrepreneurship and undermine local economic resilience as they 'can end up creating vicious circles of suboptimal development trajectories ' (Rodríguez-Pose 2013, p.1041. However, hysteresis has hitherto been studied mainly within the economic sphere, many studies emphasising the economic level impact of shocks (see, for example, Cross 1993;Cross et al 2012;Martin 2012), and therefore less is known about how hysteresis manifests at the institutional level. Moreover, while previous research has highlighted variations in regional economic resilience (see, for example, Martin 2012; Pike et al 2010), this article addresses the question of intraregional variation in economic resilience with a focus on the less researched local scale .…”

Section: Introductionmentioning

confidence: 99%

Entrepreneurship and local economic resilience: the impact of institutional hysteresis in peripheral places

2017

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This article examines how the legacies of the past in peripheral post-industrial places serve to shape current and future entrepreneurial activity, and with it local economic resilience. Drawing on in-depth qualitative interviews with key regional stakeholders, the article reveals how peripheral post-industrial places are constrained by their histories. This is found to be manifest in different ways, such as low aspirations, generational unemployment and a loss of identity which are in turn compounded by negative perceptions of place and opportunity. These issues culminate in institutional hysteresis at the local level and constrain entrepreneurial ambition. The article argues that the rigidity and reproduction of informal institutions continues to stymie economic resilience and growth. We conclude by reflecting on the implications for entrepreneurship in peripheral post-industrial places as well as with recommendations for policy.

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Memory of recessions

Cited by 13 publications

References 21 publications

Economic shocks and growth: Spatio‐temporal perspectives on Europe's economies in a time of crisis

Economic shocks and growth: Spatio‐temporal perspectives on Europe's economies in a time of crisis

Recessionary Shocks and Regional Employment: Evidence on the Resilience of U.K. Regions*

Entrepreneurship and local economic resilience: the impact of institutional hysteresis in peripheral places

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