Regional Aggregate Indicators Under Subnational Heterogeneity: Evidence from the COVID-19 Pandemic in Spain

Thumbnail Image

Identifiers

URI: http://hdl.handle.net/10952/9835
ISSN: 1848-9664
DOI: 10.1080/1331677X.2022.2119427

Files

Articulo. Regional aggregate indicators under subnational heterogeneity evidence from the COVID-19 pandemic in Spain.pdf (2.8 MB)

Publication date

2023-09-30

Authors

Contributors

Advisors

Journal Title

Journal ISSN

Volume Title

Publisher

Metrics

relationships.isProjectOf

relationships.isOrgUnitOf

relationships.isJournalIssueOf

Abstract

The COVID-19 outbreak forced governments to implement regional measures avoiding the spread of the virus, while evaluat- ing their economic effects. However, official Spanish regional economic information is scarce. We estimate monthly regional aggregated indicators for each Spanish region combining a mixed frequency Dynamic Factor Model with a recursive procedure that identifies the most informative variables capturing economic developments in each region. The set of variables that better describe aggregate economic conditions varies considerably across the regions, which emphasizes the heterogeneity in their productive structures. Our results suggest that the post-pandemic recovery will be uneven across territories, stressing the need to monitor regional economic developments.

Description

This article addresses the lack of timely regional economic data in Spain during the COVID-19 pandemic. It develops monthly regional aggregate indicators using a Dynamic Factor Model (DFM) with mixed-frequency data and recursive variable selection tailored to each region’s economic structure. The study finds significant heterogeneity in economic impacts and recovery trajectories across Spanish regions, stressing the need for high-frequency, region-specific monitoring tools. The results support the design of adaptive economic policies in response to asymmetric shocks like pandemics, particularly within decentralized national frameworks.

Disciplines

Administración y Dirección de EmpresasCiencias de la ComunicaciónDerecho

Keywords

Regional heterogeneityAggregate indicatorsFactor modelVariable selectionAsymmetric shocksSynchronization

Type

journal article

Bibliographic citation

Lopez-Buenache, G., Pallarés, N., & Zhukova, V. (2023). Regional aggregate indicators under subnational heterogeneity: evidence from the COVID-19 pandemic in Spain. Economic research-Ekonomska istraživanja, 36(1), 746-766.

Collections

Publicaciones

Endorsement

Review

Supplemented By

Referenced By

Creative Commons license

Attribution-NonCommercial-NoDerivatives 4.0 Internacional
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivatives 4.0 Internacional