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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References listed on IDEAS
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- Xavier Gabaix, 2009.
"Power Laws in Economics and Finance,"
Annual Review of Economics,
Annual Reviews, vol. 1(1), pages 255-294, 05.
- Stephen J. Redding, 2010.
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16562, National Bureau of Economic Research, Inc.
- Redding, Stephen J., 2010. "Theories of Heterogeneous Firms and Trade," CEPR Discussion Papers 7961, C.E.P.R. Discussion Papers.
- Stephen Redding, 2010. "Theories of Heterogeneous Firms and Trade," CEP Discussion Papers dp0994, Centre for Economic Performance, LSE.
- Stephen Redding, 2010. "Theories of heterogeneous firms and trade," LSE Research Online Documents on Economics 48908, London School of Economics and Political Science, LSE Library.
- 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.
- Xavier Gabaix & Rustam Ibragimov, 2011. "Rank - 1 / 2: A Simple Way to Improve the OLS Estimation of Tail Exponents," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 29(1), pages 24-39, January.
- Xavier Gabaix, 2011.
"The Granular Origins of Aggregate Fluctuations,"
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.
- 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.
- 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.
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