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Product Dynamics and Macroeconomic Shocks

Author

Listed:
  • Masashige Hamano

    (Waseda University, School of Political Science and Economics)

  • Toshihiro Okubo

    (Faculty of Economics, Keio University)

Abstract

This paper investigates the relationships between aggregate shocks and individual products in the economy, aiming to inform macroeconomic policy and address sectoral imbalances. Using Japanese man- ufacturing census data from 1992 to 2013, we analyze product sales growth (intensive margins) and the number of product-producing plants (extensive margins) to identify patterns and heterogeneity across products and product categories. We employ a structural model to analyze the sources of product busi- ness cycles, finding that product-specific demand shocks play a crucial role in explaining product sales dynamics, while both product-specific and plant-product specific shocks are essential for understanding extensive margins. Our findings offer important implications for the design of targeted and effective poli- cies that promote stability, growth, employment, and inclusiveness across diverse sectors of the economy.

Suggested Citation

  • Masashige Hamano & Toshihiro Okubo, 2026. "Product Dynamics and Macroeconomic Shocks," Working Papers 2602, Waseda University, Faculty of Political Science and Economics.
    • Handle: RePEc:wap:wpaper:2602
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    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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