How local ‘shocks’ influence U.S. economy

A team of economists including Professor Esteban Rossi-Hansberg have developed a model that can measure the widespread effects of local industry fluctuations, such as the sudden closing of a major airline hub. Gauging the power of these fluctuations could be a useful tool when it comes to designing policies to manage past and future shocks.

Read more about predicting the effects of a local event on the broader U.S. economy