285. 南加州和新英格兰
P1 - The early 1990 economic downturn produced severe regional recessions in NE and SC. The regional recession in NE began 1 year earlier than the national one. The SC entered at about the same time. Both regions had an employment fell much more steeply than the national one.
P2 - The two regional recessions share some characteristics. Prior to the recessions, total nonagricultural employment hit a peak. The main difference is NE had a greater % in services and a smaller % in the finance & etc. Otherwise the sectoral composition of the two regions are similar.
P3 - The conventional widsom regarding the cause of each region's downturns is similar. Both had declines in durable manufacturing combined with a boom-bust cycle in the local real estate market.
P4 - Can one think of the two regional recessions as similar phenomena? The analysis here explores further and examines the role of policy in preventing the downturns.