Regional Aggregate Indicators Under Subnational Heterogeneity: Evidence from the COVID-19 Pandemic in Spain

This article addresses the lack of timely regional economic data in Spain during the COVID-19 pandemic. It develops monthly regional aggregate indicators using a Dynamic Factor Model (DFM) with mixed-frequency data and recursive variable selection tailored to each region’s economic structure. The st...

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Detalles Bibliográficos
Autores: López Buenache, Germán, Pallarés, Nina, Zhukova, Vita
Tipo de recurso: artículo
Fecha de publicación:2023
País:España
Institución:Universidad Católica San Antonio de Murcia (UCAM)
Repositorio:RIUCAM. Repositorio Institucional de la Universidad Católica San Antonio de Murcia
OAI Identifier:oai:repositorio.ucam.edu:10952/9835
Acceso en línea:http://hdl.handle.net/10952/9835
Access Level:acceso abierto
Palabra clave:Regional heterogeneity
Aggregate indicators
Factor model
Variable selection
Asymmetric shocks
Synchronization
Descripción
Sumario:This article addresses the lack of timely regional economic data in Spain during the COVID-19 pandemic. It develops monthly regional aggregate indicators using a Dynamic Factor Model (DFM) with mixed-frequency data and recursive variable selection tailored to each region’s economic structure. The study finds significant heterogeneity in economic impacts and recovery trajectories across Spanish regions, stressing the need for high-frequency, region-specific monitoring tools. The results support the design of adaptive economic policies in response to asymmetric shocks like pandemics, particularly within decentralized national frameworks.