, using local projections, the paper zooms in on shocks originating in the United States, Europe, and China. Our results …, Europe, and China reduces economic activity in the rest of the world, with the effects being mostly felt in Europe and the …

.S. regions and across Europe using a multivariate vector autoregression technique. The paper finds inflexible real wages in all … force to employment shocks is much greater in the United States compared to Europe. The strong labor force response in the … United States prevents any persistence in relative regional unemployment rates whereas the lack of mobility in Europe results …