The German Manufacturing Sector is a Granular Economy
AbstractUsing the approach suggested by Gabaix (Econometrica 2011) this paper demonstrates that idiosyncratic shocks in the largest firms are important for an understanding of aggregate volatility in German manufacturing industries. The implications of this finding for theoretical and empirical research and for economic policy are discussed.
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Bibliographic InfoPaper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 219.
Length: 17 pages
Date of creation: Nov 2011
Date of revision:
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Power law; idiosyncratic shocks; granular residual; Germany;
Other versions of this item:
- Wagner, Joachim, 2011. "The German Manufacturing Sector is a Granular Economy," IZA Discussion Papers 6115, Institute for the Study of Labor (IZA).
- E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Daniel S. Hamermesh, 2000. "The Craft of labormetrics," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(3), pages 363-380, April.
- Michael Konold, 2007. "European Data Watch: New possibilities for economic research through integration of establishment-level panel data of German official statistics," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(2), pages 321-334.
- Xavier Gabaix, 2009.
"The Granular Origins of Aggregate Fluctuations,"
NBER Working Papers
15286, National Bureau of Economic Research, Inc.
- Xavier Gabaix, 2008.
"Power Laws in Economics and Finance,"
NBER Working Papers
14299, National Bureau of Economic Research, Inc.
- Stephen Redding, 2010.
"Theories of Heterogeneous Firms and Trade,"
CEP Discussion Papers
dp0994, Centre for Economic Performance, LSE.
- Xavier Gabaix & Rustam Ibragimov, 2007. "Rank-1/2: A Simple Way to Improve the OLS Estimation of Tail Exponents," NBER Technical Working Papers 0342, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Wagner).
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