Resilience Analysis of the 2008 Economic Crisis Using Entropic Measures

Abstract

This paper deals with the analysis of employment data of the 2008 economic crises. The analyses are done by using entropy measures that can help with predicting regional employment dynamics. Our finding suggests that the Shannon entropy and Tsallis entropy are significant predictor for the size of the employment downturn. The Rényi entropy is also useful predictor of the rate of employment downturn in recession phase. When the Shannon entropy was growing through the recovery phase before the crisis, regions experience a higher rate of employment decrease in the following recession period and high Shannon entropy infer the smaller employment downturn The results indicate the different role of the Tsallis entropy that plays a different role in comparison to Shannon entropy. The higher the Tsallis entropy, the more severally the region was affected. In conclusion, the use of entropic measures as resilience indicators in terms of regional policy is a significant predictor of regional resilience.