The Aggregate Implications of Regional Business Cycles
---- Acknowledgements ----
First draft: May 2014. A previous version of this paper circulated as "The Regional Evolution of Prices and Wages During the Great Recession". We thank Mark Aguiar, Manuel Amador, David Argente, Mark Bils, Elisa Giannone, Adam Guren, Simon Gilchrist, Paul Gomme, Bob Hall, Loukas Karabarbounis, Pat Kehoe, Virgiliu Midrigan, Elena Pastorino, Harald Uhlig and Joe Vavra for their very helpful comments and suggestions. Finally, we thank seminar participants at Berkeley, Boston University, Brown, Chicago, Chicago Federal Reserve, Columbia, Duke, Harvard, Michigan, Minneapolis Federal Reserve, Minnesota Workshop in Macroeconomic Theory, MIT, NBER's Summer Institute EF&G, NBER's Summer Institute Prices Program, Northwestern, Princeton, Rochester, St. Louis Federal Reserve, UCLA, Yale's Cowles Conference on Macroeconomics, the Board of Governors of the Federal Reserve, and the Bank of England. Any remaining errors are our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.