IDEAS home Printed from https://ideas.repec.org/a/rre/publsh/v25y1995i2p159-186.html
   My bibliography  Save this article

Regional Economic Fluctuations: Portfolio Variance And Industrial Instability Across Metro Areas

Author

Listed:
  • James A. Kurre

    (Pennsylvania State University at Erie)

  • Clifford H. Woodruff III

    (Bureau of Economic Analysis, U.S. D.O.C.)

Abstract

Portfolio variance analysis is a useful tool for examining both a region's industrial diversification and its cyclical instability. Ideally, it can guide policy makers in choosing industrial targets that will reduce regional instability. However, for portfolio variance to be a useful tool, policy makers must be able to predict the effect of a new industry on the local economy. This paper applies portfolio variance analysis to 17 American MSAs in order to determine the cyclical characteristics of industries and to determine if they are consistent across regions. We also examine regional business cycle amplitude and how it relates to a region's industrial structure. In the process, we identify a technique for measuring the contribution of each industry to an MSA's instability and for separating that effect into portions due to the size of the industry and its cyclical behavior.

Suggested Citation

  • James A. Kurre & Clifford H. Woodruff III, 1995. "Regional Economic Fluctuations: Portfolio Variance And Industrial Instability Across Metro Areas," The Review of Regional Studies, Southern Regional Science Association, vol. 25(2), pages 159-186, Fall.
    • Handle: RePEc:rre:publsh:v:25:y:1995:i:2:p:159-186
    as

    Download full text from publisher

    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/25.2.4/pdf
    File Function: To View On Journal Page
    Download Restriction: no
    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/download/25.2.4/447
    File Function: To Download Article
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Coulson N. Edward, 1993. "The Sources of Sectoral Fluctuations in Metropolitan Areas," Journal of Urban Economics, Elsevier, vol. 33(1), pages 76-94, January.
    2. Niles C. Schoening & Larry Sweeney, 1989. "Applying an Industrial Diversification Decision Model to Small Regions," The Review of Regional Studies, Southern Regional Science Association, vol. 19(3), pages 14-17, Fall.
    3. Sammis B. White & John F. Zipp & William F. McMahon & Peter D. Reynolds & Jeffrey D. Osterman & Lisa S. Binkley, 1990. "ES202: The Data Base for Local Employment Analysis," Economic Development Quarterly, , vol. 4(3), pages 240-253, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Edward Nissan & George Carter, 2009. "Specialization of state sectoral employment," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 33(2), pages 148-160, April.
    2. Marina Malkina, 2019. "How Change in Industry Mix Can Improve the Financial Performance of Regional Economies: Evidence from the Portfolio Approach," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(6), pages 1561-1575.
    3. Geoffrey Hewings, 2008. "On some conundra in regional science," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 251-265, June.
    4. Marina Yurievna Malkina, 2018. "Instability of Financial Return of Regional Economies and Its Determinants," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 3, pages 88-114.
    5. Hewings, Geoffrey J.D., 2014. "Spatially blind trade and fiscal impact policies and their impact on regional economies," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(4), pages 590-602.
    6. Fritz, Oliver, 1999. "Optimal Management of a Regional Income and Pollution Portfolio," ERSA conference papers ersa99pa187, European Regional Science Association.
    7. Edward Nissan & George Carter, 2003. "Contributions of state to regional income dispersion," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 27(2), pages 243-261, June.
    8. Edward Nissan & George Carter, 2006. "The measurement of employment diversity for states and regions," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 30(2), pages 186-197, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Owyang, Michael T. & Piger, Jeremy & Wall, Howard J., 2013. "Discordant city employment cycles," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 367-384.
    2. Niles C. Schoening & Larry E. Sweeney, 1992. "Proactive Industrial Development Strategies And Portfolio Analysis," The Review of Regional Studies, Southern Regional Science Association, vol. 22(3), pages 227-238, Winter.
    3. Carlino, Gerald A. & DeFina, Robert H., 2004. "How strong is co-movement in employment over the business cycle? Evidence from state/sector data," Journal of Urban Economics, Elsevier, vol. 55(2), pages 298-315, March.
    4. Julie L. Hotchkiss & M. Melinda Pitts & Mary Beth Walker, 2017. "Impact of first birth career interruption on earnings: evidence from administrative data," Applied Economics, Taylor & Francis Journals, vol. 49(35), pages 3509-3522, July.
    5. Fullerton, Jr., Thomas M. & Taylor West, Carol A., 1998. "Regional Econometric Housing Start Forecast Accuracy in Florida," The Review of Regional Studies, Southern Regional Science Association, vol. 28(3), pages 15-42, Winter.
    6. Barth, James R. & Benefield, Justin D. & Hollans, Harris, 2015. "Industry Concentration and Regional Housing Market Performance," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(2).
    7. Dan S. Rickman, 2010. "Modern Macroeconomics And Regional Economic Modeling," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 23-41, February.
    8. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2008. "The Push-Pull Effects of the Information Technology Boom and Bust," Economic Development Quarterly, , vol. 22(3), pages 200-212, August.
    9. Coulson, N. Edward, 1999. "Sectoral sources of metropolitan growth," Regional Science and Urban Economics, Elsevier, vol. 29(6), pages 723-743, November.
    10. Julie L. Hotchkiss & Myriam Quispe-Agnoli, 2008. "The labor market experience and impact of undocumented workers," FRB Atlanta Working Paper 2008-07, Federal Reserve Bank of Atlanta.
    11. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2006. "The push-pull effects of the information technology boom and bust: insight from matched employer-employee data," FRB Atlanta Working Paper 2006-01, Federal Reserve Bank of Atlanta.
    12. repec:rre:publsh:v:40:y:2010:i:2:p:181-96 is not listed on IDEAS
    13. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2006. "Earnings on the Information Technology Roller Coaster: Insight from Matched Employer‐Employee Data," Southern Economic Journal, John Wiley & Sons, vol. 73(2), pages 342-361, October.
    14. Wall, Howard J., 2013. "The employment cycles of neighboring cities," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 177-185.
    15. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2003. "The ups and downs of jobs in Georgia: what can we learn about employment dynamics from state administrative data?," FRB Atlanta Working Paper 2003-38, Federal Reserve Bank of Atlanta.
    16. Chang, Sheng-Wen & Coulson, N. Edward, 2001. "Sources of Sectoral Employment Fluctuations in Central Cities and Suburbs: Evidence from Four Eastern U.S. Cities," Journal of Urban Economics, Elsevier, vol. 49(2), pages 199-218, March.
    17. Gerald A. Carlino & Keith Sill, 1998. "The cyclical behavior of regional per capita incomes in the postwar period," Working Papers 98-11, Federal Reserve Bank of Philadelphia.
    18. Chiang, Shu-hen & Liu, Wen-Chien & Suardi, Sandy & Zhao, Jing, 2021. "United we stand divided we fall: The time-varying factors driving European Union stock returns," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 71(C).
    19. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2004. "Wage gains among job changers across the business cycle: insight from state administrative data," FRB Atlanta Working Paper 2004-19, Federal Reserve Bank of Atlanta.
    20. repec:bla:jregsc:v:44:y:2004:i:3:p:517-542:1 is not listed on IDEAS
    21. Rena Sivitanidou, 1999. "Office Rent Processes: The Case of U.S. Metropolitan Markets," Working Paper 8664, USC Lusk Center for Real Estate.
    22. Cader, Hanas A. & Leatherman, John C., 2008. "Geography of Employment and Establishment Dynamics in Information Technology and E-Commerce Industries," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(1), pages 1-18.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v:25:y:1995:i:2:p:159-186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tammy Leonard & Lei Zhang (email available below). General contact details of provider: http://www.srsa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.