IDEAS home Printed from https://ideas.repec.org/p/okl/wpaper/1303.html
   My bibliography  Save this paper

The Great Recession and Nonmetropolitan America

Author

Listed:
  • Dan S. Rickman

    (Oklahoma State University)

  • Mouhcine Guettabi

    (University of Alaska-Anchorage)

Abstract

The influence of the housing market bubble on U.S. business cycle dynamics during the previous decade has been well-documented. Yet, little if anything is known about how non metropolitan areas fared during the period. This study examines the association of regional housing market bubbles with relative non metropolitan economic performance during the business cycle phases of the decade. To better infer causality the study makes extensive use of exogenous measures of a symmetric labor demand shocks. Among the primary findings, the study establishes the important role of natural amenity attractiveness in regional housing market cycles and regional employment population growth dynamics.

Suggested Citation

  • Dan S. Rickman & Mouhcine Guettabi, 2013. "The Great Recession and Nonmetropolitan America," Economics Working Paper Series 1303, Oklahoma State University, Department of Economics and Legal Studies in Business.
  • Handle: RePEc:okl:wpaper:1303
    as

    Download full text from publisher

    File URL: https://business.okstate.edu/site-files/docs/ecls-working-papers/OKSWPS1303.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Raven E. Saks & Abigail Wozniak, 2011. "Labor Reallocation over the Business Cycle: New Evidence from Internal Migration," Journal of Labor Economics, University of Chicago Press, vol. 29(4), pages 697-739.
    2. Clark, Todd E., 1995. "Rents and prices of housing across areas of the United States. A cross-section examination of the present value model," Regional Science and Urban Economics, Elsevier, vol. 25(2), pages 237-247, April.
    3. Todd M. Gabe & Richard Florida, 2013. "Effects of the Housing Boom and Bust on U.S. Metro Employment," Growth and Change, Wiley Blackwell, vol. 44(3), pages 391-414, September.
    4. David H. Autor & David Dorn, 2013. "The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market," American Economic Review, American Economic Association, vol. 103(5), pages 1553-1597, August.
    5. Maria Akers & Jason Henderson, 2009. "Recession catches rural America," Economic Review, Federal Reserve Bank of Kansas City, vol. 94(Q I), pages 65-87.
    6. Albert Saiz, 2010. "The Geographic Determinants of Housing Supply," The Quarterly Journal of Economics, Oxford University Press, vol. 125(3), pages 1253-1296.
    7. Winters, John V., 2009. "Wages and prices: Are workers fully compensated for cost of living differences?," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 632-643, September.
    8. Glaeser, Edward L. & Gyourko, Joseph & Saiz, Albert, 2008. "Housing supply and housing bubbles," Journal of Urban Economics, Elsevier, vol. 64(2), pages 198-217, September.
    9. Dorfman, Jeffrey H. & Patridge, Mark D. & Galloway, Hamilton, 2008. "Are High-Tech Employment and Natural Amenities Linked?: Answers from a Smoothed Bayesian Spatial Model," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6459, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Dan S. Rickman, 2010. "Modern Macroeconomics And Regional Economic Modeling," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 23-41, February.
    11. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2015. "When Spatial Equilibrium Fails: Is Place-Based Policy Second Best?," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1303-1325, August.
    12. Keith D. Harvey & Peter J. Nigro, 2004. "Do Predatory Lending Laws Influence Mortgage Lending? An Analysis of the North Carolina Predatory Lending Law," The Journal of Real Estate Finance and Economics, Springer, vol. 29(4), pages 435-456, December.
    13. Seong-Hoon Cho & Seung Gyu Kim & Roland Roberts, 2011. "Values of environmental landscape amenities during the 2000-2006 real estate boom and subsequent 2008 recession," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(1), pages 71-91.
    14. Atif Mian & Amir Sufi, 2011. "House Prices, Home Equity-Based Borrowing, and the US Household Leverage Crisis," American Economic Review, American Economic Association, vol. 101(5), pages 2132-2156, August.
    15. Stuart A. Gabriel & Stuart S. Rosenthal, 2004. "Quality of the Business Environment Versus Quality of Life: Do Firms and Households Like the Same Cities?," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 438-444, February.
    16. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, January-J.
    17. Steven C. Deller & Tsung-Hsiu (Sue) Tsai & David W. Marcouiller & Donald B.K. English, 2001. "The Role of Amenities and Quality of Life In Rural Economic Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 352-365.
    18. Shushanik Hakobyan & John McLaren, 2016. "Looking for Local Labor Market Effects of NAFTA," The Review of Economics and Statistics, MIT Press, vol. 98(4), pages 728-741, October.
    19. Thomas Klier & Daniel P. McMillen, 2008. "Evolving Agglomeration In The U.S. Auto Supplier Industry," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 245-267, February.
    20. Partridge, Mark D. & Rickman, Dan S. & Olfert, M. Rose & Ali, Kamar, 2012. "Dwindling U.S. internal migration: Evidence of spatial equilibrium or structural shifts in local labor markets?," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 375-388.
    21. Dan S. Rickman & Shane D. Rickman, 2011. "Population Growth In High‐Amenity Nonmetropolitan Areas: What'S The Prognosis?," Journal of Regional Science, Wiley Blackwell, vol. 51(5), pages 863-879, December.
    22. Chad R. Wilkerson, 2008. "Is rural America facing a home price bust?," Main Street Economist, Federal Reserve Bank of Kansas City, issue 6.
    23. Kelly D. Edmiston & Roger Zalneraitis, 2007. "Rising foreclosures in the United States: a perfect storm," Economic Review, Federal Reserve Bank of Kansas City, vol. 92(Q IV), pages 115-145.
    24. Treyz, George I., 1991. "Causes of changes in wage variation among states," Journal of Urban Economics, Elsevier, vol. 29(1), pages 50-62, January.
    25. Joseph Gyourko & Albert Saiz & Anita Summers, 2008. "A New Measure of the Local Regulatory Environment for Housing Markets: The Wharton Residential Land Use Regulatory Index," Urban Studies, Urban Studies Journal Limited, vol. 45(3), pages 693-729, March.
    26. Mark D. Partridge & Dan S. Rickman, 2002. "Did The New Economy Vanquish The Regional Business Cycle?," Contemporary Economic Policy, Western Economic Association International, vol. 20(4), pages 456-469, October.
    27. Ashok Bardhan & Richard Walker, 2011. "California shrugged: fountainhead of the Great Recession," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 4(3), pages 303-322.
    28. Mark D. Partridge & Dan S. Rickman, 1996. "The Role Of Industry Structure, Costs, And Economic Spillovers In Determining State Employment Growth Rates," The Review of Regional Studies, Southern Regional Science Association, vol. 26(3), pages 235-264, Winter.
    29. Anthony Pennington‐Cross & Giang Ho, 2008. "Predatory Lending Laws and the Cost of Credit," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 36(2), pages 175-211, June.
    30. David A. McGranahan & Timothy R. Wojan & Dayton M. Lambert, 2011. "The rural growth trifecta: outdoor amenities, creative class and entrepreneurial context -super-§," Journal of Economic Geography, Oxford University Press, vol. 11(3), pages 529-557, May.
    31. Mark D., Partridge & Dan S., Rickman & M. Rose, Olfert & Kamar, Ali, 2010. "Dwindling U.S. Internal Migration: Evidence of Spatial Equilibrium?," MPRA Paper 28157, University Library of Munich, Germany.
    32. Giang Ho & Anthony Pennington-Cross, 2005. "The impact of local predatory lending laws," Working Papers 2005-049, Federal Reserve Bank of St. Louis.
    33. Jason Henderson, 2010. "Will the rural economy rebound in 2010?," Economic Review, Federal Reserve Bank of Kansas City, vol. 95(Q I), pages 95-119.
    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. Rickman, Dan S. & Wang, Hongbo, 2016. "Regional Housing Supply Elasticity in China 1999-2013: A Spatial Equilibrium Analysis," MPRA Paper 69157, University Library of Munich, Germany.
    2. Georgeanne M. Artz & Younjun Kim & Peter F. Orazem, 2016. "Does Agglomeration Matter Everywhere?: New Firm Location Decisions In Rural And Urban Markets," Journal of Regional Science, Wiley Blackwell, vol. 56(1), pages 72-95, January.
    3. Dan S. Rickman & Hongbo Wang, 2017. "US regional population growth 2000–2010: Natural amenities or urban agglomeration?," Papers in Regional Science, Wiley Blackwell, vol. 96, pages 69-90, March.
    4. Steven Brakman & Charles Marrewijk & Mark Partridge, 2015. "Local Consequences Of Global Production Processes," Journal of Regional Science, Wiley Blackwell, vol. 55(1), pages 1-9, January.
    5. Virginie Mamadouh & Luiza Bialasiewicz & Gordon F. Mulligan & Neil Reid & Michael S. Moore, 2016. "The Current Health of Metropolitan Labour Markets in the United States," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(2), pages 232-253, April.
    6. Munasib, Abdul & Rickman, Dan S., 2015. "Regional economic impacts of the shale gas and tight oil boom: A synthetic control analysis," Regional Science and Urban Economics, Elsevier, vol. 50(C), pages 1-17.
    7. Mark D. Partridge & Dan S. Rickman & Ying Tan & M. Rose Olfert, 2013. "U.S. Regional Poverty Post-2000: The Lost Decade," Economics Working Paper Series 1304, Oklahoma State University, Department of Economics and Legal Studies in Business.
    8. Pablo Mejía-Reyes & Reyna Vergara-González, 2017. "Are More Severe Recessions Followed by Stronger Early Expansions of Employment in the Mexican States?," The Review of Regional Studies, Southern Regional Science Association, vol. 47(3), pages 243-269, Fall.
    9. Hongbo Wang & Dan Rickman, 2020. "Housing Price and Population Growth across China: The Role of Housing Supply," International Regional Science Review, , vol. 43(3), pages 203-228, May.

    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. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    2. Dan S. Rickman, 2014. "Assessing Regional Quality of Life: A Call for Action in Regional Science," The Review of Regional Studies, Southern Regional Science Association, vol. 44(1), pages 1-12, Spring.
    3. Dan S. Rickman, 2013. "Should Oklahoma Be More Like Texas? A Taxing Decision," The Review of Regional Studies, Southern Regional Science Association, vol. 43(1), pages 1-22, Summer.
    4. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2015. "When Spatial Equilibrium Fails: Is Place-Based Policy Second Best?," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1303-1325, August.
    5. John Winters, 2013. "Differences in quality of life estimates using rents and home values," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 377-409, October.
    6. Partridge, Mark & Rickman, Dan & Tan, Ying & Olfert, M. Rose, 2013. "U.S. Regional Poverty Post-2000: The Lost Decade," MPRA Paper 48528, University Library of Munich, Germany.
    7. Michael Amior & Alan Manning, 2018. "The Persistence of Local Joblessness," American Economic Review, American Economic Association, vol. 108(7), pages 1942-1970, July.
    8. Hongbo Wang, 2016. "The Texas economic model, miracle or mirage? A spatial hedonic analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(2), pages 393-417, March.
    9. Paciorek, Andrew, 2013. "Supply constraints and housing market dynamics," Journal of Urban Economics, Elsevier, vol. 77(C), pages 11-26.
    10. Ganong, Peter & Shoag, Daniel, 2017. "Why has regional income convergence in the U.S. declined?," Journal of Urban Economics, Elsevier, vol. 102(C), pages 76-90.
    11. Dan S. Rickman & Hongbo Wang, 2017. "US regional population growth 2000–2010: Natural amenities or urban agglomeration?," Papers in Regional Science, Wiley Blackwell, vol. 96, pages 69-90, March.
    12. Yong Chen & David J. Lewis & Bruce Weber, 2016. "Conservation Land Amenities And Regional Economies: A Postmatching Difference-In-Differences Analysis Of The Northwest Forest Plan," Journal of Regional Science, Wiley Blackwell, vol. 56(3), pages 373-394, June.
    13. John V Winters & Yu Li, 2017. "Urbanisation, natural amenities and subjective well-being: Evidence from US counties," Urban Studies, Urban Studies Journal Limited, vol. 54(8), pages 1956-1973, June.
    14. Gyourko, Joseph & Molloy, Raven, 2015. "Regulation and Housing Supply," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1289-1337, Elsevier.
    15. Dong, Yilin, 2016. "A note on geographical constraints and housing markets in China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 15-21.
    16. Alexander N. Bogin & William M. Doerner & William D. Larson, 2019. "Local House Price Paths: Accelerations, Declines, and Recoveries," The Journal of Real Estate Finance and Economics, Springer, vol. 58(2), pages 201-222, February.
    17. Daniel A. Broxterman & William D. Larson, 2020. "An empirical examination of shift‐share instruments," Journal of Regional Science, Wiley Blackwell, vol. 60(4), pages 677-711, September.
    18. Hongbo Wang & Dan Rickman, 2020. "Housing Price and Population Growth across China: The Role of Housing Supply," International Regional Science Review, , vol. 43(3), pages 203-228, May.
    19. Liu, Shimeng & Yang, Xi, 2021. "Human capital externalities or consumption spillovers? The effect of high-skill human capital across low-skill labor markets," Regional Science and Urban Economics, Elsevier, vol. 87(C).
    20. Anil Rupasingha & Yongzheng Liu & Mark Partridge, 2015. "Rural Bound: Determinants of Metro to Non-Metro Migration in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(3), pages 680-700.

    More about this item

    Keywords

    Great Recession; housing bubble; regional development; nonmetropolitan growth;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General

    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:okl:wpaper:1303. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/sboksus.html .

    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: Harounan Kazianga (email available below). General contact details of provider: https://edirc.repec.org/data/sboksus.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.