The German Manufacturing Sector is a Granular Economy
Using 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.
|Date of creation:||Nov 2011|
|Date of revision:|
|Publication status:||published in: Applied Economics Letters, 2012, 19 (17), 1663-1665|
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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.:
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NBER Technical Working Papers
0342, National Bureau of Economic Research, Inc.
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- Xavier Gabaix, 2008.
"Power Laws in Economics and Finance,"
NBER Working Papers
14299, National Bureau of Economic Research, Inc.
- Xavier Gabaix, 2011.
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Econometric Society, vol. 79(3), pages 733-772, 05.
- Daniel S. Hamermesh, 2000. "The Craft of Labormetrics," ILR Review, Cornell University, ILR School, vol. 53(3), pages 363-380, April.
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