Proposal preview

Recovering from large-scale crisis: strategies, patterns and outcomes, 19th-21st centuries

The intensity of a crisis can be measured either by the extent of the fall from peak to through, or by the number of years required to recover pre-crisis levels. The current crisis, for instance, is very often analysed as a Great Recession, in view of the breath-taking collapse of real GDP during the 2008-2009 biennia in many advanced economies (indeed, some southern European countries have not returned yet the real GDP per capita they enjoyed in 2007). In fact, applying the duration criterion, one might consider that a crisis which entailed nearly a decade of under-utilization of productive capacity can be better characterized as a great depression rather than a great recession.
Prolonged under-utilization of productive capacity has been recorded in other large-scale crisis in several regions of the globe. Japan’s rate of growth has been suffering long-term decline since the early 1990s. Latin America experienced a “lost decade” for economic growth during the 1980s, and the US and Western Europe recorded stagnation throughout the 1970s. The advanced and developing world suffered the worst contemporary collapse in banking, agriculture and manufacturing production during the Great Depression of the 1930s. The collapse of activity during First World War and its aftermath led to dramatic agrarian crises, industrial slumps, bank bankruptcies and political turmoil in Latin America, southern Europe and southern Asia. Mediterranean economies suffered financial instability and long-lasting stagnation during the wave of globalization of the late 19th century, and southern and far-east Asia experienced dramatic deflation and sustained de-industrialization during the first half of the 19th century. Mediterranean Europe faced a large-scale crisis when the Ancient Regime collapsed and the Napoleonic wars badly disturbed the previous patterns of trade.
The above cases suggest that large-scale crises defined as prolonged periods of under-utilization of productive capacity, have been relatively frequent over the course of economic history. In this session we encourage shcolars working in the field to present their recent research results, focusing on the following objectives.
First, further discussion is needed on the concepts of large-scale crisis or great depression, which might be considered as synonymous. The organizers suggest prioritizing the number of years required for the recovery of pre-crisis levels as the key criteria for detecting these events, but they are open to consider alternative measures.
Second, the session is intended to highlight the debate on the best indicators to identify full recovery after a great depression. For recent large-scale crises, a substantial range of indicators can be used: GDP, human developement index, height, agrarian production, industrial production, real financial assets, market shares and businesses’ rates of profit. Perhaps alternative measures such as demographic indicators, urbanization rates or real wages might also be considered.
Third, large-scale crises usually derive from a combination of shocks which merit further analysis. In most depresions a key role is played by previous periods of financial speculation and mass borrowing by firms, households and governments. But other crises have also been triggered by ecological catastrophes, the outburst of war, or the new forms of globalization in world market caused by the diffusion of innovation in transport and communication.
Fourth, the impact of great depressions is not even across all productive sectors. According to some interpretations, primary commodities deflation or banking bankruptcies might be the critical stage in converting a crisis into a prolonged depression. Similarly, during the recovery phase different industries may have different roles in helping to overcome the depression.
Last but not least, governments and firms had to select sustainable strategies to cope with depressions. This session aims to discuss the types of policies adopted by governments to deal with prolonged crises and their outcomes. We also consider the degree of success of strategies implemented at the firm level. Finally, the macroeconomic mechanisms of adjustment which contribute to achieve full recovery will also be analysed.

Organizer(s)

  • Jordi Catalan Universitat de Barcelona jordi.catalan@ub.edu Catalonia-Spain
  • Maria Eugenia Mata Universidade Nova de Lisboa memata@novasbe.pt Portugal

Session members

  • Maria Eugenia Mata, Universidade Nova de Lisboa
  • Jordi Catalan, University of Barcelona
  • Michalis Psalidopoulos, University of Athens/IMF
  • Bernard C. Beaudreau, Université Laval, Québec
  • Richard Sylla, New York Stern School of Business
  • Francesco Chiapparino, Università Politecnica delle Marche
  • Ramon Ramon-Muñoz, Universitat de Barcelona
  • Aiko Ikeo, Waseda University, Tokio
  • Riccardo Semeraro, Catholic University of Brescia
  • Miquel Gutierrez-Poch, Centre Antoni de Capmany-UB
  • Carlos Newland, ESEADE/UTD
  • Claudio Belini, UBA-CONICET/Ravignani
  • Carles Manera , Universitat Illes Balears
  • Gabriele Morettini, Università Politecnica delle Marche
  • Joseph Francis , ESEADE

Discussant(s)

  • Bernard C. Beaudreau Université Laval, Québec bernard.beaudreau@ecn.ulaval.ca
  • Maria Eugenia Mata Uinversidade Nova de Lisboa memata@novasbe.p
  • Jordi Catalan Universitat de Barcelona jordi.catalan@ub.edu
  • Claudio Belini CONICET-University of Buenos Aires claudiobelini@conicet.gov.ar
  • Ioanna Sapho Pepelasis Athens University of Economics and Business ipepelasis@aueb.gr
  • Michalis Psalidopoulos University of Athens/IMF mpsal@econ.uoa.gr
  • Aiko Ikeo Waseda University, Tokio aikoikeo@waseda.jp
  • Ramon Ramon-Muñoz Universitat de Barcelona ramon@ub.edu
  • Richard Sylla New York Stern School of Business rsylla@stern.nyu.edu
  • Miquel Gutierrez-Poch Centre Antoni de Capmany-UB mgutierrez@ub.edu
  • Carlos Newland ESEADE/UTD newland@eseade.edu.ar
  • Riccardo Semeraro Catholic University of Brescia riccardo.semeraro@virgilio.it
  • Carles Manera Universitat Illes Balears carles.manera@uib.es
  • Francesco Chiapparino Università Politecnica delle Marche f.chiapparino@univpm.it

Papers

Panel abstract

Depressions can be considered as crises which require a significant number of years before full recovery. This session analyses this kind of crisis, keeping in mind the following objectives: First, to contribute to the debate on the concept of large-scale crisis, including intensity and duration. Second, to define the best indicators to identify full recovery after great depression. Third, as large scale crises usually derive from a combination of shocks, to analyse these events in greater detail. Fourth, as the impact of great depressions is not the same in all productive sectors, to focus on the uneven roles of different industries in promoting full recovery. Finally, to discuss sustainable strategies implemented by both governments and firms to cope with depressions and to identify the most successful policies.

1st half

Recovering from industrial depressions: Italy and Spain in comparison, 1861-2016

Jordi Catalan

The paper identifies the industrial depressions in Italy and Spain during the period between 1861 and 2016. Crises are defined as periods in which per capita industrial output falls below the preceding peak. Five historical lessons are drawn. First, slumps were relatively frequent events in southern Europe; both Italy and Spain experienced industrial crisis during half of the years under consideration. Second, some crises lasted for more than three years. From 1861 onwards, Spain recorded eight of this large-scale crises, and Italy nine. Third, budget deficit and currency depreciation acted as buffers against the deepening of the depression. The simultaneous adoption of expansionary fiscal and monetary policies was more common in Spain than in Italy and more typical in the 20th century than in the 19th century. Forth, depreciation was the key adjustment mechanism in both countries. Finally, the Great Recession reinforced a dramatic trend of de-industrialization in southern Europe.

The paper identifies the industrial depressions in Italy and Spain during the period between 1861 and 2016. Crises are defined as periods in which per capita industrial output falls below the preceding peak. Five historical lessons are drawn. First, slumps were relatively frequent events in southern Europe; both Italy and Spain experienced industrial crisis during half of the years under consideration. Second, some crises lasted for more than three years. From 1861 onwards, Spain recorded eight of this large-scale crises, and Italy nine. Third, budget deficit and currency depreciation acted as buffers against the deepening of the depression. The simultaneous adoption of expansionary fiscal and monetary policies was more common in Spain than in Italy and more typical in the 20th century than in the 19th century. Forth, depreciation was the key adjustment mechanism in both countries. Finally, the Great Recession reinforced a dramatic trend of de-industrialization in southern Europe.

Three episodes of crisis and recovery in Greece: 1893, 1922 and 1944

Michalis Psalidopoulos

The purpose of this paper is to highlight national and international reactions to three different crises experienced by Greece. The first case is the 1893 sovereign debt crisis, caused by over-borrowing and a sudden stop of export flows, with overproduction of currants. This crisis, combined with a short war with the Ottoman Empire, led to the imposition of an International Financial Control over Greek public finances and over economic policy in general. The second case is the 1922 humanitarian crisis associated with the influx of 1.2 mill refugees from Asia Minor. National policies and the intervention of the League of Nations are critically assessed. The third case is the reconstruction and development after the Second World War, in 1944. Greek economic policy up to 1953 , United Nations relief assistance, and British and US initiatives, will be analyzed in order to improve our understanding of the nature of recovery.

The purpose of this paper is to highlight national and international reactions to three different crises experienced by Greece. The first case is the 1893 sovereign debt crisis, caused by over-borrowing and a sudden stop of export flows, with overproduction of currants. This crisis, combined with a short war with the Ottoman Empire, led to the imposition of an International Financial Control over Greek public finances and over economic policy in general. The second case is the 1922 humanitarian crisis associated with the influx of 1.2 mill refugees from Asia Minor. National policies and the intervention of the League of Nations are critically assessed. The third case is the reconstruction and development after the Second World War, in 1944. Greek economic policy up to 1953 , United Nations relief assistance, and British and US initiatives, will be analyzed in order to improve our understanding of the nature of recovery.

SHTA, NIRA and NLRA: Congruence and Efficacy

Bernard C. Beaudreau

What do the Smoot-Hawley Tariff Act of 1930, the National Industrial Recovery Act of 1933, and the National Labor Relations Act of 1935 have in common? This paper argues that all three shared a common goal, namely raising US domestic expenditure and closing what was at the time a widening gap between potential and actual GDP. A GPT in the form of electric unit drive in combination with cheap, abundant public utility-provided power had increased US potential GDP throughout the 1920s and 1930s, opening a sizable output gap. Senator Reed Smoot and the Republican Party proposed a round of tariff hikes to close the gap. President-elect Roosevelt opted for higher wages, the idea being that purchasing power was deficient, and Senator Robert Wagner, in the wake of the defeat of the NIRA, proposed collective bargaining as an alternative, constitution-consistent means to achieve the same end, namely increasing purchasing power.

What do the Smoot-Hawley Tariff Act of 1930, the National Industrial Recovery Act of 1933, and the National Labor Relations Act of 1935 have in common? This paper argues that all three shared a common goal, namely raising US domestic expenditure and closing what was at the time a widening gap between potential and actual GDP. A GPT in the form of electric unit drive in combination with cheap, abundant public utility-provided power had increased US potential GDP throughout the 1920s and 1930s, opening a sizable output gap. Senator Reed Smoot and the Republican Party proposed a round of tariff hikes to close the gap. President-elect Roosevelt opted for higher wages, the idea being that purchasing power was deficient, and Senator Robert Wagner, in the wake of the defeat of the NIRA, proposed collective bargaining as an alternative, constitution-consistent means to achieve the same end, namely increasing purchasing power.

The Effect of the Great Depression in Argentina: Economic Policies and Industrial Recovery

Claudio Belini

This paper analyses the impact of the 1929 depression on the manufacturing industry in Argentina. The first part focuses on the relationships between crises and the performance of manufacturing industry throughout the 20th century. The second part studies the political responses given to the international crisis and discusses their role in promoting recovery. The third part analyses the impact of the crisis on the Argentine manufacturing sector. It is argued that although economic policies were not the main cause of recovery, they played an important role in promoting industrial growth. The conservative governments of the 1930s did not define an industrial policy, but regarded manufacturing as a key sector in the recovery of growth and employment. A significant import substitution process was implemented during the second part of the depression, derived from two different factors: the long-term evolution of Argentina's industrial structure and the rise of grain prices after 1934.

This paper analyses the impact of the 1929 depression on the manufacturing industry in Argentina. The first part focuses on the relationships between crises and the performance of manufacturing industry throughout the 20th century. The second part studies the political responses given to the international crisis and discusses their role in promoting recovery. The third part analyses the impact of the crisis on the Argentine manufacturing sector. It is argued that although economic policies were not the main cause of recovery, they played an important role in promoting industrial growth. The conservative governments of the 1930s did not define an industrial policy, but regarded manufacturing as a key sector in the recovery of growth and employment. A significant import substitution process was implemented during the second part of the depression, derived from two different factors: the long-term evolution of Argentina's industrial structure and the rise of grain prices after 1934.

US Recovery from the Great Depression: The Role of World War II

Richard Sylla

This paper revisits a venerable analysis contending that large deficit spending by the US government during World War II, in Keynesian fashion, ended the Depression decade of the 1930s. One point developed is that the US achieved substantially full employment before it entered the war in December 1941, but that actions taken in anticipation of war entry before and after the war began in Europe in September 1939 were responsible for the achievement. A second point is that the war led to developments that shifted upward the rate of growth of the American economy for decades after it ended. The middle decades of the twentieth century became ones of the greatest growth of productivity and real income per capita in all of US economic history after 1790.

This paper revisits a venerable analysis contending that large deficit spending by the US government during World War II, in Keynesian fashion, ended the Depression decade of the 1930s. One point developed is that the US achieved substantially full employment before it entered the war in December 1941, but that actions taken in anticipation of war entry before and after the war began in Europe in September 1939 were responsible for the achievement. A second point is that the war led to developments that shifted upward the rate of growth of the American economy for decades after it ended. The middle decades of the twentieth century became ones of the greatest growth of productivity and real income per capita in all of US economic history after 1790.

A Comparison of the 1997 East Asian Currency Crisis and the 2007-2008 Global Financial Crisis: An East Asian Perspective

Aiko Ikeo

Focusing on the two economic and financial crises — the 1997 East Asian currency crisis and the 2008-2009 Great Recession — this paper compares how East Asian policy makers and economists saw and handled these two events. East Asia has two OECD members (South Korea and Japan) and other non-OECD, developing economies. In 1997, three countries (Thailand, Indonesia, and South Korea) received IMF emergency loan packages with the conditionality of ESAF’s concessional loan program (effective during 1987-1999) while Malaysia decided not to rely on the IMF (but instead on its fiscal policy). In September 2008, few East Asia economies were disastrously affected via the intertwined financial channels immediately after the failure of the Lehman Brothers (an American investment bank). Over the following months, however, they began to feel the effects of the Recession with the fall in their exports to the developed countries.

Focusing on the two economic and financial crises — the 1997 East Asian currency crisis and the 2008-2009 Great Recession — this paper compares how East Asian policy makers and economists saw and handled these two events. East Asia has two OECD members (South Korea and Japan) and other non-OECD, developing economies. In 1997, three countries (Thailand, Indonesia, and South Korea) received IMF emergency loan packages with the conditionality of ESAF’s concessional loan program (effective during 1987-1999) while Malaysia decided not to rely on the IMF (but instead on its fiscal policy). In September 2008, few East Asia economies were disastrously affected via the intertwined financial channels immediately after the failure of the Lehman Brothers (an American investment bank). Over the following months, however, they began to feel the effects of the Recession with the fall in their exports to the developed countries.

Why So Slow? Another Look at Economic Recovery in the 1930s

Bernard C. Beaudreau

Recently, interest in the Great Depression, specifically in the prolonged recovery, has been on the rise. Vedder and Galloway and Cole and Ohanian have pointed to Roosevelt's New Deal policies (NIRA, PRA) as increasing real wages and de facto delaying what would otherwise have been an earlier recover. In this paper, we present another explanation. We argue that the cause lay in the technological change of the 1920s, particularly in the introduction in the late 1920s of electric unit drive (EUD) which increased the rated capacity of existing equipment, thus increasing output per worker. The problem of excess capacity was compounded/amplified by the SHTB with its promise of greater market share which further increased investment, resulting in greater economy-wide excess capacity. Similarly the New Deal’s higher wages and various electric power-related public works programs (TVA, Boulder Dam, Grand Coulee Dam), also compounded the problem by increasing conversion to EUD.

Recently, interest in the Great Depression, specifically in the prolonged recovery, has been on the rise. Vedder and Galloway and Cole and Ohanian have pointed to Roosevelt's New Deal policies (NIRA, PRA) as increasing real wages and de facto delaying what would otherwise have been an earlier recover. In this paper, we present another explanation. We argue that the cause lay in the technological change of the 1920s, particularly in the introduction in the late 1920s of electric unit drive (EUD) which increased the rated capacity of existing equipment, thus increasing output per worker. The problem of excess capacity was compounded/amplified by the SHTB with its promise of greater market share which further increased investment, resulting in greater economy-wide excess capacity. Similarly the New Deal’s higher wages and various electric power-related public works programs (TVA, Boulder Dam, Grand Coulee Dam), also compounded the problem by increasing conversion to EUD.

2nd half

Recovering from the Great Depression to Decolonisation: Capital Returns in Portugal and Overseas Empire

Maria Eugénia Mata & José Rodrigues da Costa

Crises and integration of financial markets are facets of the increasing globalisation of the worldwide economy. The focus in this paper is the financial recovery for total returns after the Great Depression, of domestic and overseas equities listed on the Lisbon Stock Exchange. The worldwide consumption of the tropical crops can explain the spread of corporations in colonial empires. Using the Lisbon Stock Exchange daily bulletins for the period coming from the Great Depression to Decolonisation, this paper compares the returns from corporations operating in the motherland with those operating in the Portuguese empire to prove the recovery after the Great Depression. Distance, climate, lack of trained local labour force, and other difficulties, represented higher risk and higher capital returns. Using equity indices we found that, as expected, returns from entrepreneurship and businesses overseas were higher than for the whole Lisbon Stock Market (particularly after WWII).

Crises and integration of financial markets are facets of the increasing globalisation of the worldwide economy. The focus in this paper is the financial recovery for total returns after the Great Depression, of domestic and overseas equities listed on the Lisbon Stock Exchange. The worldwide consumption of the tropical crops can explain the spread of corporations in colonial empires. Using the Lisbon Stock Exchange daily bulletins for the period coming from the Great Depression to Decolonisation, this paper compares the returns from corporations operating in the motherland with those operating in the Portuguese empire to prove the recovery after the Great Depression. Distance, climate, lack of trained local labour force, and other difficulties, represented higher risk and higher capital returns. Using equity indices we found that, as expected, returns from entrepreneurship and businesses overseas were higher than for the whole Lisbon Stock Market (particularly after WWII).

Corporate Profitability during Argentina’s Great Depression: A Sectoral Analysis

Joseph A. Francis and Carlos Newland

Argentina’s Great Depression has traditionally been seen as short and relatively mild. This interpretation is based on a macro perspective that focuses on fairly constant aggregate output and an apparently low level of deflation. A sectoral analysis of corporate profitability during the period 1927-1934 presents a more nuanced picture. As the overall profit rate collapsed, some sectors were affected more than others. Agriculture was hit particularly hard, as were transportation, commerce, and insurance. For industry, the effects were more mixed, while banking benefitted from the government’s determination to continue servicing its debts, which kept interest rates high for other sectors and crowded out private investment.

Argentina’s Great Depression has traditionally been seen as short and relatively mild. This interpretation is based on a macro perspective that focuses on fairly constant aggregate output and an apparently low level of deflation. A sectoral analysis of corporate profitability during the period 1927-1934 presents a more nuanced picture. As the overall profit rate collapsed, some sectors were affected more than others. Agriculture was hit particularly hard, as were transportation, commerce, and insurance. For industry, the effects were more mixed, while banking benefitted from the government’s determination to continue servicing its debts, which kept interest rates high for other sectors and crowded out private investment.

Protectionism, autarchy and recovery policies from the crisis in Fascist Italy of the 1930s

Francesco Chiapparino and Gabriele Morettini

The objective of the paper is to contrast the best- known forms of coping with the Great Depression in Italy, i.e. the rescue of heavy industry and banks, with the overall policy of recovery adopted by Fascism. The monetary anchorage decided in 1927 and the extent of nationalizations and bailouts undertook during the early 1930s, left little room for further spending policies. Regarding agriculture, which accounted still for more than a quarter of Italian GDP, anti-cyclical support was mainly indirect, through custom protection. Policies in favor of autarkic self-sufficiency in the supply of grain favored the improvement of the trade balance and the recovery of the fertilizer industry, but also reinforced the long-term dramatic North-South divide within the country.

The objective of the paper is to contrast the best- known forms of coping with the Great Depression in Italy, i.e. the rescue of heavy industry and banks, with the overall policy of recovery adopted by Fascism. The monetary anchorage decided in 1927 and the extent of nationalizations and bailouts undertook during the early 1930s, left little room for further spending policies. Regarding agriculture, which accounted still for more than a quarter of Italian GDP, anti-cyclical support was mainly indirect, through custom protection. Policies in favor of autarkic self-sufficiency in the supply of grain favored the improvement of the trade balance and the recovery of the fertilizer industry, but also reinforced the long-term dramatic North-South divide within the country.

Export performance in the 1930s: evidence from the international olive oil market

Ramon Ramon-Muñoz

The Great Depression of the 1930s was a worldwide phenomenon. Between 1929 and 1932, GDP, price levels, employment and international trade dropped around the world. Taking as a case study the international market in olive oil (a major export item in the Mediterranean basin), this paper analyses export performance for a large sample of olive oil producers during the 1930s. The first part of the study shows that export volumes fell dramatically in Italy and France, experienced robust growth in Greece, Palestine, Portugal, Tunisia and Turkey, declined modestly in Spain, and grew slightly in Algeria, Syria and Lebanon. The second part of the paper explores the reasons why export performance widely diverged widely among countries, and may thus help to identify the determinants of cross-country differences in the timing and the severity of the 1930s slump and in the process of recovery from the Great Depression.

The Great Depression of the 1930s was a worldwide phenomenon. Between 1929 and 1932, GDP, price levels, employment and international trade dropped around the world. Taking as a case study the international market in olive oil (a major export item in the Mediterranean basin), this paper analyses export performance for a large sample of olive oil producers during the 1930s. The first part of the study shows that export volumes fell dramatically in Italy and France, experienced robust growth in Greece, Palestine, Portugal, Tunisia and Turkey, declined modestly in Spain, and grew slightly in Algeria, Syria and Lebanon. The second part of the paper explores the reasons why export performance widely diverged widely among countries, and may thus help to identify the determinants of cross-country differences in the timing and the severity of the 1930s slump and in the process of recovery from the Great Depression.

Surviving Peace. The Recovery of the Italian Gun-making District in the Postwar Period

Riccardo Semeraro

The Italian gun-making district has roots that can be traced back to the Early Modern Age and the Venetian Republic. The industry was concentrated around the town of Gardone Val Trompia which, together with its surrounding municipalities, made up a local production system characterized by flexibility and adaptability. In the second half of the twentieth century, in particular during the Golden Age, it underwent a period of extraordinary growth. This growth, which was driven by the export of civilian firearms by local producers all over the world, was preceded by a serious crisis following the end of military orders after WWII. Focusing on the main protagonists and the new internal structure of the local production system, the aim of the essay is to trace crisis, recovery, and success of the gun-making district after 1945.

The Italian gun-making district has roots that can be traced back to the Early Modern Age and the Venetian Republic. The industry was concentrated around the town of Gardone Val Trompia which, together with its surrounding municipalities, made up a local production system characterized by flexibility and adaptability. In the second half of the twentieth century, in particular during the Golden Age, it underwent a period of extraordinary growth. This growth, which was driven by the export of civilian firearms by local producers all over the world, was preceded by a serious crisis following the end of military orders after WWII. Focusing on the main protagonists and the new internal structure of the local production system, the aim of the essay is to trace crisis, recovery, and success of the gun-making district after 1945.

Is paper consumption a good indicator of the economic cycles? The OECD countries case (1965-2011)

Miquel Gutiérrez-Poch

The intensity of the economic crisis is usually measured through the evolution of the GDP per capita. However, many other indicators have been used to analyse the economic cycles. Here I propose a new one: consumption per capita of paper. In this study I try to show how sensitive paper consumption is to economic cycles. The relationship between the economic performance and paper consumption varies depending on the type of paper, because it is not a homogenous good. For this reason, besides the total consumption per capita, I take different types of paper into consideration. The analysis, which spans from 1961 until the present day, focuses on OECD countries and pays special attention to episodes of crisis and recovery. attention to periods of crisis and recovery.

The intensity of the economic crisis is usually measured through the evolution of the GDP per capita. However, many other indicators have been used to analyse the economic cycles. Here I propose a new one: consumption per capita of paper. In this study I try to show how sensitive paper consumption is to economic cycles. The relationship between the economic performance and paper consumption varies depending on the type of paper, because it is not a homogenous good. For this reason, besides the total consumption per capita, I take different types of paper into consideration. The analysis, which spans from 1961 until the present day, focuses on OECD countries and pays special attention to episodes of crisis and recovery. attention to periods of crisis and recovery.

Resilience and economic crisis: typology for Spanish Autonomous Communities, based on the profit rate (1965-2011)

Carles Manera, Ferran Navinés & Javier Fanconetti

The concept of resilience originates in the field of psychology and environmental sciences, and is applied here to the Great Recession for economic analysis. In economic terms, the boundary situations (from the psychological perspective) or adverse ecological conditions (from the environmental perspective) have their expression in shocks caused by economic crises, with negative effects. The study aims to establish evaluation systems that measure the capacity of the Spanish regions over a long period of time (1965-2011), to resist or preserve their productive structure or to recover or adapt to changes in face of adversity The first approach, supported by preservation, is a static conception of the crisis and capital competition, which does not break the stationary equilibrium of an economy. The second aspect, based on the adaptation criteria, is more dynamic (Schumpeterian) that is, more characteristic of the evolutionist approach. This is the vision adopted in this study.

The concept of resilience originates in the field of psychology and environmental sciences, and is applied here to the Great Recession for economic analysis. In economic terms, the boundary situations (from the psychological perspective) or adverse ecological conditions (from the environmental perspective) have their expression in shocks caused by economic crises, with negative effects. The study aims to establish evaluation systems that measure the capacity of the Spanish regions over a long period of time (1965-2011), to resist or preserve their productive structure or to recover or adapt to changes in face of adversity The first approach, supported by preservation, is a static conception of the crisis and capital competition, which does not break the stationary equilibrium of an economy. The second aspect, based on the adaptation criteria, is more dynamic (Schumpeterian) that is, more characteristic of the evolutionist approach. This is the vision adopted in this study.