This report assesses the relationship between defense spending in Hawaii and the levels of output, employment, and earnings in Hawaii's economy. The presence of defense activity in Hawaii is significant, but how much does it add to Hawaii's economy? We collected data on defense expenditures on...

We document three changes in postwar US macroeconomic dynamics: (i) the procyclicality of labor productivity has vanished, (ii) the relative volatility of employment has risen, and (iii) the relative (and absolute) volatility of the real wage has risen. We propose an explanation for all three...