Resilience of US Metropolitan Areas to the 2008 Financial Crisis


Book Description

This chapter seeks to explain why only a minority of US metropolitan areas enjoyed quicker recovery and higher levels of economic growth following the 2008 banking crisis and recession of 2007-2009. An uneven pattern of growth came into being over the course of the recession and persisted through 2013, evident in both total employment and on a sectoral basis. Using cluster analysis, we characterize the best performing group of metropolitan areas as exhibiting less economic sectorial diversity than average and lower rates of subprime mortgages as a share of all households. The worst performing areas show the highest average rates of household distress as well as bank failures. The most consistent pattern among our variables was that gradually worsening growth outcomes were associated with increasingly larger subprime mortgage and HAMP concentrations. Our findings recommend further research into the conditions of financial distress among metropolitan areas as well as into the nature of sector specialization, as both potential factor affecting growth.




Metropolitan Resilience in a Time of Economic Turmoil


Book Description

Cities, counties, school districts and other local governments have suffered a long-lasting period of fiscal challenges since the beginning of the Great Recession. Metropolitan governments continue to adjust to the "new normal" of sharply lower property values, consumer sales, and personal income. Contributors to this volume include elected officials, academics, key people in city administrations, and other nationally recognized experts who discuss solutions to the urban problems created by the Great Recession. Metropolitan Resilience in a Time of Economic Turmoil looks at the capacity of local governments to mobilize resources efficiently and effectively, as well as the overall effects of the long-term economic downturn on quality of life. Introducing the reader to the fiscal effects of the Great Recession on cities, the book examines the initial fraying and subsequent mending of the social safety net, the opportunities for pursuing economic development strategies, the challenges of inter-jurisdictional cooperation, and the legacy costs of pension liabilities and infrastructure decay. Contributors are Phil Ashton, Raphael Bostic, Richard Feiock, Rachel A. Gordon, Rebecca Hendrick, Geoffrey J.D. Hewings, David Merriman, Richard Nathan, Michael A. Pagano, Breeze Richardson, Annette Steinacker, Nik Theodore, Rachel Weber, and Margaret Weir.




Cities under Austerity


Book Description

Across the world's most industrialized economies, the financial crisis of 2007 caused a contraction of state budgets and stimulated attempts to reform debt-burdened governments. In the United States, a system of fiscal federalism meant this turn towards austerity took a uniquely fragmented and geographically diverse form. Drawing on case studies of recent urban restructuring, Cities under Austerity challenges dominant understandings of austerity as a distinctly national condition and develops a conceptualization of the new US urban condition that reveals its emerging political and social fault lines. The contributors empirically detail the restructuring that is taking place across the United States, its underlying logics, its local impacts and the ongoing processes of challenge and resistance that influences how it is shaping the lives of citizens. The new American political economy, it is argued, needs to be understood as composed of a mosaic of urban experiences that both build upon a differentiated foundation and creates new divergences. As state reforms continue to interact with this diverse urban political economy of the United States, this collection provides a state-of-the-art survey on how postcrisis convergences and divergences in urban economies and urban politics have laid the foundations for the new political geography of the United States.




Resilience, Skill Endowment and Diversity


Book Description

By adopting the evolutionary approach to resilience, this paper discusses and empirically investigate the determinants of the ability of region to resist, absorb, and react to recessionary shocks. The recent 2008 Great Recession has extremely affected most of the advanced economies all over the World, leading scholars to study in details how different regions responded to the crisis. The aim of the paper is to contribute this literature analyzing the impact of technological, industrial and human capital composition on the short-term resilience. The empirical analysis is conducted on 295 U.S. Metropolitan Statistical Areas over the period 2008-2014. The main finding is that the most resilient regions are those characterized by a very diversified industrial structure. An excess of technological diversity, on the other hand, seems to thwart the ability to absorb external shocks. Lastly, our results suggest that the local occupational structure matters: a high endowment of high-level abstract skills has a positive correlation with regional resilience, though the moderating effect of technological diversity appears to be negative.




Beneath the Rust℗


Book Description

This thesis examines how network connections between economic leaders and civic institutions may increase an urban area's resilience against economic challenges. The evolution of the American marketplace during the last century from an industrial to a "knowledge-based" economy confronted urban areas with significant challenges, especially depending on the extent of local dependence on the failing industries. This thesis provides a sociocultural measure to help explain the differences in abilities to adapt to industrial collapse, using Buffalo, New York as an example. An urban area's business leaders and their involvement in local civic groups form interlocking networks. When an individual firm closes or relocates, and its corresponding business leaders leave, the social vacuum left behind may impact the greater network in unforeseen ways that dramatically contribute to the economic detriment of the urban area. This thesis has two core components. First, the qualitative approach compares the city of Buffalo in 1950 and 1975, immediately before and after industrial collapse, and the relationships within the networks between industrial leaders and civic institutions. This social framework is necessary to contextualize the responses to post-industrial economic challenges. Second, the quantitative approach tests the level of connectivity, or strength of ties, among economic and civic entities in Buffalo for both the years 1950 and 1975. These periods represent the economic landscape both before and after major setbacks for local economies, including firm closures and relocation, resulting in population loss and economic decline.




The Financial Crisis Inquiry Report


Book Description

The Financial Crisis Inquiry Report, published by the U.S. Government and the Financial Crisis Inquiry Commission in early 2011, is the official government report on the United States financial collapse and the review of major financial institutions that bankrupted and failed, or would have without help from the government. The commission and the report were implemented after Congress passed an act in 2009 to review and prevent fraudulent activity. The report details, among other things, the periods before, during, and after the crisis, what led up to it, and analyses of subprime mortgage lending, credit expansion and banking policies, the collapse of companies like Fannie Mae and Freddie Mac, and the federal bailouts of Lehman and AIG. It also discusses the aftermath of the fallout and our current state. This report should be of interest to anyone concerned about the financial situation in the U.S. and around the world.THE FINANCIAL CRISIS INQUIRY COMMISSION is an independent, bi-partisan, government-appointed panel of 10 people that was created to "examine the causes, domestic and global, of the current financial and economic crisis in the United States." It was established as part of the Fraud Enforcement and Recovery Act of 2009. The commission consisted of private citizens with expertise in economics and finance, banking, housing, market regulation, and consumer protection. They examined and reported on "the collapse of major financial institutions that failed or would have failed if not for exceptional assistance from the government."News Dissector DANNY SCHECHTER is a journalist, blogger and filmmaker. He has been reporting on economic crises since the 1980's when he was with ABC News. His film In Debt We Trust warned of the economic meltdown in 2006. He has since written three books on the subject including Plunder: Investigating Our Economic Calamity (Cosimo Books, 2008), and The Crime Of Our Time: Why Wall Street Is Not Too Big to Jail (Disinfo Books, 2011), a companion to his latest film Plunder The Crime Of Our Time. He can be reached online at www.newsdissector.com.




A Research Agenda for Regeneration Economies


Book Description

This Research Agenda provides both a state-of-the-art review of existing research on city-regions, and expands on new research approaches. Expert contributors from across the globe explore key areas for reading city-regions, including: trade, services and people, regional differentiation, big data, global production networks, governance and policy, and regional development. The book focuses on developing a more integrated and systematic approach to reading city-regions as part of regeneration economics, identifying conceptual and methodological developments in this field of study.




Resilient Coastal City Regions


Book Description

The importance of dealing with potentially severe climate impacts is becoming increasingly clear. In recent years, we have seen a number of extreme temperature and precipitation events, with climate records set in countries around the globe, but notably in the United States and Australia.The Lincoln Institute initially became involved in the issue of climate change through our work with planning directors in the 30 largest cities of the United States. Beginning in 2006 these city planners started raising the issue of how to respond to their mayors' questions about global warming. Many of the mayors were already signing the U.S. Conference of Mayors Climate Protection Agreement, launched by Seattle Mayor Greg Nickels in 2005 as the Kyoto Protocol was going into effect. Building on a number of Institute-sponsored working papers, policy focus reports, and research seminars over the past five years, this book reports on responses to climate change in nine coastal cities and metropolitan regions in the United States and Australia. The two countries, both large, sprawling, and showing a predilection for coastal development, have much in common when it comes to climate change. First, they are among the highest greenhouse gas (GHG) emitters per capita in the developed world, with Australia usually heading the list and the United States close behind. Second, both countries are exposed to significant climate-related risk relative to sea level rise and storm surge, drought and water shortage, floods, wildfires, and heat waves. The city regions documented here represent some of the most critical conditions faced in the two countries. This book deals with both mitigation (the reduction of GHG emissions) and adaptation (managing the risk of climate impacts that cannot be avoided) as the terms are generally used in this field. At least from the vantage point of the United States, it appears that the pendulum has swung from an initial emphasis on mitigation, as reflected in the mayors' initiatives in response to the Kyoto Protocol, to one focusing on adaptation, as cities begin to prepare for the onslaught of climate-related impacts. The nine cases show a range of adaptation responses. However, as explored in the concluding chapter, to avoid catastrophic results, it remains necessary to significantly reduce GHG emissions. While there are encouraging developments at the national level in Australia, recent analysis suggests that the time for action is critically short. The pivotal environmental issue of our time has largely left the world stage as governments across the globe struggle for economic stability in the wake of the financial crisis of 2008. In spite of mixed prospects for action at the international and national levels, state and local governments have shown a greater ability to respond to climate change. Resilience and adaptation are coming to the fore in public discussions, with increasing attention given to the impacts of changes in climate on human welfare and the integrity of ecosystems.In bringing forth this volume, the aim was to document approaches that will be useful not just in the United States and Australia but more broadly in coastal regions throughout the world. We are humbly aware that this is only an initial response to a challenge with a magnitude of potential impacts never before experienced in human history, a challenge that will test our ability to work together at every scale.




Regional Resilience to Climate and Environmental Shocks


Book Description

The book illustrates the use of spatial econometric models to analyze the economic resilience of regions to climate-related shocks. Although climate change is a global externality, climate anomalies can trigger locally disruptive shocks, whose adverse effects on economic growth are transmitted through neighbouring relationships (based on geography, trade, or technological bonds). After laying out the theoretical case for spatial analysis in the study of economic resilience, the book introduces spatial econometric models, their estimation and testing procedures, as well as applications of spatial econometrics in various domains. It then reviews the current literature on the role of space in the propagation of climate shocks, and discusses how adaptation and mitigation policies can leverage spatial dependencies, with a special focus on renewable energy technologies and agricultural productivity. It appeals to scholars of regional and spatial sciences and econometrics as well as those interested in the spatial effects of climate and environmental shocks.




Regions and Economic Resilience


Book Description

The term “resilience” originated in environmental studies and describes one’s biological capacity to adapt and thrive under adverse environmental conditions. Regional economic resilience is defined as the capacity of a territory’s economy to resist and/or recover quickly from external shocks, often even improving on its prior situation (before the shock). The contributions in this book analyse different channels related to processes of mitigation (resistance–recovery) and adaptive resilience (reorientation–renewal), in a wide variety of geographical settings and scales. While the different chapters include relevant methodological advances in this literature, they also obtain relevant results from a policy perspective. Moreover, the wide spectrum of topics and analyses among the contributions in this book extend the current framework, to analyse regional economic resilience, from the intersection of several disciplines involving geographers, economists and demographers, as well as environmental scientists.