Bouncing Back: Explaining the Ability to Recover from Recession in Connecticut and Other States

Abstract

Most economists believe that the nation is beginning to bounce back from the deepest slump since the Great Depression. But if recessions past are any guide, the recovery process will likely be both bumpy and protracted, because growth tends to return unevenly across the regional landscape. Some states rebound quickly, while others find the road to recovery a long, hard slog. What factors explain the speed at which states are able to shake off a recession? And what lessons for today might recoveries past carry for Connecticut?