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The Geography of Consumption and Local Economic Shocks: The Case of the Great Recession

Author

Listed:
  • Abe C. Dunn
  • Mahsa Gholizadeh

    (Bureau of Economic Analysis)

Abstract
We estimate across-county spending flows between firms and consumers for every county in the United States, providing a new consumption link that has not been studied previously. We highlight the importance of this link by estimating the effect of changes in local housing wealth on consumption and employment from 2001 to 2019. We generally find that the effect from changes in housing wealth crosses borders to affect consumption and employment in a pattern consistent with our spending flows. However, we find potential consumers who reside outside the local commuting zone disproportionately affect local spending and employment during the Great Recession.

Suggested Citation

  • Abe C. Dunn & Mahsa Gholizadeh, 2023. "The Geography of Consumption and Local Economic Shocks: The Case of the Great Recession," BEA Working Papers 0205, Bureau of Economic Analysis.
    • Handle: RePEc:bea:wpaper:0205
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    Cited by:

    1. Rachel Soloveichik, 2021. "Tracking Marijuana in the National Accounts," BEA Working Papers 0188, Bureau of Economic Analysis.
    2. Andrea Batch & Benjamin R. Bridgman & Abe C. Dunn & Mahsa Gholizadeh, 2023. "Consumption Zones," BEA Papers 0114, Bureau of Economic Analysis.

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    More about this item

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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