The economic vulnerability of small-island developing states (SIDS) to macroeconomic shocks has long been recognized. One significant factor is the perception that their economic health is dominated by external factors over which their local governments have no control. The SIDS government...

We use the economic conditions of the federated states in the U.S. to offer new insights into the heterogeneity dynamics of the widely held assumption of the negative effect of EPU on economic activity. We use a semi-parametric smooth varying coefficient model (SVCM) to show that states with...