The Cyclical Sensitivity of the South Dakota Economy: Revisited

It is clear that the US economy is slowing and possibly in a recession. This article discusses if and how the economy of South Dakota will be affected and whether the South Dakota economy is insulated from the national business cycle or whether the diversification of the South Dakota economy in recent years has increased the state's sensitivity to the business cycle. The behavior of the South Dakota and Sioux Falls economies are examined. The results of this study indicate that both the South Dakota and Sioux Falls economies were affected by the 4 business cycles since 1973. There was some weak evidence to support the view that a strong agricultural economy could cushion the cyclical response of the South Dakota economy.