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The sources of decentralised output fluctuations in France

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  • Isabelle Cadoret
  • Christophe Tavera

Abstract

. This paper examines the sources of disturbances to short‐term and long‐term output variations in the French regions. We use an error‐components model that decomposes decentralised output movements into common national, industry‐specific, region‐specific, and idiosyncratic effects. We find that industry‐specific disturbances account for the major part of the variance of the systematic component of decentralised output fluctuations. Moreover, decentralised regional policy strategies that do not target specific sectors within the region only have a very limited impact on both short‐term and long‐term sectoral output variations. Abstract. Este artículo examina las causas de perturbaciones en las variaciones a corto y largo plazo en el output de las regiones en Francia. Utilizamos un modelo de componente de errores que descompone movimientos de output descentralizados en efectos comunes nacionales, específicos por industria, específicos por regiones, e idiosincrásicos. Encontramos que las perturbaciones específicas por industria explican la mayor parte de la varianza del componente sistemático de fluctuaciones de output descentralizadas. Más aun, las estrategias de políticas regionales descentralizadas que no se dirigen a sectores específicos en la región solo tienen un impacto muy limitado en las variaciones a corto y largo plazo en outputs sectoriales.

Suggested Citation

  • Isabelle Cadoret & Christophe Tavera, 2007. "The sources of decentralised output fluctuations in France," Papers in Regional Science, Wiley Blackwell, vol. 86(2), pages 309-320, June.
    • Handle: RePEc:bla:presci:v:86:y:2007:i:2:p:309-320
    DOI: 10.1111/j.1435-5957.2007.00124.x
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