International Evidence on Recovery from Recessions

By Valerie Cerra, S. Saxena, U. Panizza. Social Science Research Network, 2009

113 citations recorded by the source corpus.

Although negative shocks have persistent effects on output on average, this paper shows that macroeconomic policies and the structure of the economy can influence the speed of recovery and mitigate the persistence of the shock. Indeed, monetary and fiscal stimulus and foreign aid can spur a rebound, with impacts that are asymmetrically stronger than in nonrecovery years. Real depreciation and the exchange rate regime also have asymmetric growth effects in a recovery year relative to other years of expansion. Recoveries are more sluggish in open economies, partly because fiscal policy is less effective than in closed economies.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/bd959c41539d7666685fdccb900c61f5f6a2b202

How researchers see this paper

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In Economics and Econometrics

1. P. Sunley
2. Ron Martin
3. L. Brown
4. Robert T. Greenbaum
5. Ron A. Boschma
6. P. Caro
7. Michaela Trippl
8. G. Macleod

In Finance

1. P. Sunley
2. L. Brown
3. Ron Martin
4. Robert T. Greenbaum

Citations in the corpus

• Recessionary Shocks and Regional Employment: Evidence on the Resilience of U.K. Regions (2012, unknown): “Thus, while our paper has been stimulated, in part, by the work on the impact of shocks on national growth, by for instance Cerra et al. (2009) referred to earlier, it goes beyond their analyses in four important respects.”
• On the notion of regional economic resilience: conceptualization and explanation (2015, background): “In an international context, some studies suggest that countries that experience particularly severe shocks, or several shocks in quick succession, tend to have slower rates of growth over the long term than countries not so affected (Cerra and Saxena, 2008; Cerra et al, 2009).”
• The role of industrial diversity in economic resilience: An empirical examination across 35 years (2017, background): “Cerra and Saxena (2008) found that countries that experienced severe or frequent economic or political disturbances had lower growth rates overall and that macroeconomic policies influenced the impacts of shock (Cerra et al., 2013).”