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The Cross-Sectional Dynamics of German Business Cycles: A Bird´s Eye View

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  • Michael Funke
  • Sebastian Weber
  • Jörg Döpke
  • Sean Holly

Abstract

We establish stylised facts for Germany's business cycle at the firm level. Based on longitudinal firm-level data from the Bundesbank's balance sheet statistic covering, on average, 55,000 firms per year from 1971 to 1998, we analyse the reallocation across individual producers and its connection to aggregate business cycles. Our results indicate a pronounced heterogeneity across firms. Moreover, the distribution of growth rates of firm's real sales is influenced by business cycle conditions. The cross-section skewness of real sales changes is counter-cyclical. The results confirm findings for the UK and the US and are, therefore, robust stylised facts of the business cycle.

Suggested Citation

  • Michael Funke & Sebastian Weber & Jörg Döpke & Sean Holly, 2005. "The Cross-Sectional Dynamics of German Business Cycles: A Bird´s Eye View," Quantitative Macroeconomics Working Papers 20508, Hamburg University, Department of Economics.
    • Handle: RePEc:ham:qmwops:20508
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    More about this item

    Keywords

    Business Cycles; Cross-Sectional Moments; Firm Growth;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing

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