Regional recessions and recoveries in theory and practice: a resilience-based overview

This paper surveys recent developments related to regional recessions and recoveries. Building on the idea of regional resilience, selected theoretical and empirical contributions are discussed in order to provide an overview of this area of research that looks at both equilibrium- and out-of-equilibrium approaches. On theoretical grounds, aggregate and disaggregate shocks are identified and separated, and hysteretic behaviours are examined. From an empirical perspective, linear and nonlinear econometric models are described and compared, with a particular focus on their spatial econometrics’ extensions. Possible avenues of both theoretical and empirical future research are explicitly explored.