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Description
Business cycles in Maine's economic summary areas exhibit notable variations, yet the specific dynamics within different regions remain underexplored. This study applies the Bry-Boschan Quarterly (BBQ) business cycle dating algorithm to uncover disparities in business cycles between rural and urban areas in Maine from 2016 to 2022, using high-frequency, consistent monthly sales tax data. Our findings reveal significant differences in business cycle behavior, with rural areas experiencing greater volatility compared to urban areas. Employing econometric modeling, we investigate the impact of business cycles on sales tax revenue. Preliminary results indicate a strong correlation between business cycles and sales tax, alongside other influential factors: employment and labor force participation exhibit positive correlations, whereas unemployment and the COVID-19 pandemic exhibit negative correlations. These insights provide policymakers with essential information to design targeted policies that address the distinct economic conditions across Maine's regions.
Publication Date
10-28-2024
Recommended Citation
Griffith, Ruth; Crawley, Andrew; and Daigneault, Adam, "Unveiling Regional Economic Patterns: Regional Business Cycles in Maine" (2024). Rural Issues Symposium. 72.
https://digitalcommons.library.umaine.edu/rural_issues/72