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The sources of decentralised output fluctuations in France

Author

Listed:
  • Cadoret, Isabelle
  • Tavera, Christophe

Abstract

This paper examines the sources of disturbances to short-term and long-term output variations in the French regions. We use an error-components model that decomposes decentralised output movements into common national, industry-specific, region-specific, and idiosyncratic effects. We find that industry-specific disturbances account for the major part of the variance of the systematic component of decentralised output fluctuations. Moreover, decentralised regional policy strategies that do not target specific sectors within the region only have a very limited impact on both short-term and long-term sectoral output variations.

Suggested Citation

Handle: RePEc:eee:paresc:v:86:y:2007:i:2:p:309-320
DOI: 10.1111/j.1435-5957.2007.00124.x
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JEL classification:

  • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
  • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
  • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
  • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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