Competitive Pressure and the Decline of the Rust Belt: a Macroeconomic Analysis
NBER WORKING PAPER SERIES COMPETITIVE PRESSURE AND THE DECLINE OF THE RUST BELT: A MACROECONOMIC ANALYSIS Simeon Alder David Lagakos Lee Ohanian Working Paper 20538 http://www.nber.org/papers/w20538 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 October 2014 A previous version of this paper circulated under the title “The Decline of the U.S. Rust Belt: A Macroeconomic Analysis.” We thank Ufuk Akcigit, Marco Bassetto, Jesus Fernandez-Villaverde, Pablo Fajgelbaum, Jeremy Greenwood, Berthold Herrendorf, Tom Holmes, Alejandro Justiniano, Thomas Klier, Michael Peters, Andrea Pozzi, Ed Prescott, Andres Rodriguez-Clare, Leena Rudanko, Jim Schmitz, Todd Schoellman, Marcelo Veracierto, Fabrizio Zilibotti and seminar participants at Arizona State, Autonoma de Barcelona, Berkeley, Brown, British Columbia, the Bank of Chile, Chicago Booth, the Federal Reserve Banks of Atlanta, Chicago, Minneapolis, St. Louis and Richmond, Frankfurt, LSE, Notre Dame, NYU, Ohio State, Pennsylvania, UCLA, UCSB, UCSD, USC, Wharton, Yale, Zurich, the NBER Macroeconomics across Time and Space 2014 meeting, the NBER Summer Institute 2013 (EFBGZ and PRMP), GSE Summer Forum, 2013 Midwest Macro meeting, February 2013 NBER EFG meeting, 2012 Einaudi Roma Macro Junior conference, and 2012 SED meeting (Cyprus) for helpful comments. We thank Andrew Cole, Alex Hartman, Patrick Kiernan, Patrick Orr, Samin Peirovi, Billy Smith and especially Caleb Johnson and Glenn Farley for excellent research assistance. All potential errors are ours. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.
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