Spatial variations in the relationship between economic diversity and stability

ABSTRACT

Using US county-level data, we explore how economic diversity influenced economic stability over the period of the Great Recession. We find that higher diversity is associated with greater stability, but there are distinct spatial patterns and the relationship does not hold for much of the central part of the US.

KEYWORDS:

• Economic diversity
• stability
• spatial econometrics

JEL CLASSIFICATION:

• C19
• R11
• O11

Disclosure statement

No potential conflict of interest was reported by the authors.