Tracking the business cycle at the level of state economies and discerning the impact of fiscal and regulatory policies – as well as nationwide policies – on state economies has been hampered by a limited number of available sets of high frequency indicators. In this paper, we review the data sources and series available for a cross-section of states, with discussion of the associated advantages and disadvantages. We provide estimates of the correlation and comovement of various indicators with state-level real GDP, and how different indicators define turning points in state economies. Finally, we illustrate the usefulness of high frequency state-level GDP by evaluating whether a particular state economy is performing in line with expectations.
- Series: La Follette School Working Paper No. 2018-006
- Authors: Menzie Chinn, Ryan LeCloux