Work

Regional aggregate indicators under subnational heterogeneity: evidence from the COVID-19 pandemic in Spain

Year: 2022

Type: article

Abstract: The COVID-19 outbreak forced governments to implement regional measures avoiding the spread of the virus, while evaluating 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.

Source: Economic Research-Ekonomska Istraživanja

DOI: 10.1080/1331677x.2022.2119427

Authors: German Lopez-Buenache, Nina Pallarés, Vita Zhukova

Institution: Universidad Católica de Murcia

Language: English

Topic: COVID-19 Pandemic Impacts

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Good health and well-being, Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $944