Firm Heterogeneity and Regional Business Cycles Differentials
This study represents a first attempt to empirically analyze the role of firm heterogeneity in regional business cycle behaviour. Working with monthly Italyâ€™s firms data and estimating a random effects ordered probit model, we first document sizable asymmetries in Northern and Southern firms business cycles positively related to the intensity of the national cycle: firms located in the South are more likely to reduce production levels than firms located in the North in periods of business cycle expansion and viceversa. Then, we explore the role of sectoral mix and several firm-specific factors (firm size, export propensity, liquidity constraints, demand conditions, capacity utilization and expectations) in explaining regional disparities in business cycle fluctuations. Results suggest that North-South differences in sectoral composition do not help explain the diverging behaviour of Southern firms, while by controlling for firm heterogeneity we are able to capture large part of regional business cycles differences. JEL codes: D21, E32, R10 Keywords: Regional business cycle, firm heterogeneity, random effects ordered probit
|Date of creation:||Oct 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
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.:
- Koenig, Pamina & Mayneris, Florian & Poncet, Sandra, 2010.
"Local export spillovers in France,"
European Economic Review,
Elsevier, vol. 54(4), pages 622-641, May.
- KOENIG, Pamina & MAYNERIS, Florian & PONCET, Sandra, . "Local export spillovers in France," CORE Discussion Papers RP -2225, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Pamina Koenig & Florian Mayneris & Sandra Poncet, 2009. "Local Export Spillovers in France," Working Papers 2009-18, CEPII research center.
- Pamina Koenig & Florian Mayneris & Sandra Poncet, 2010. "Local Export spillovers in France," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00633782, HAL.
- Nobuhiro Kiyotaki & John Moore, 2012.
"Liquidity, Business Cycles, and Monetary Policy,"
NBER Working Papers
17934, National Bureau of Economic Research, Inc.
- Nobuhiro Kiyotaki & John Moore, 2004. "Liquidity, Bussiness Cycles and Monetary Policy," ESE Discussion Papers 113, Edinburgh School of Economics, University of Edinburgh.
- John Moore & Nobuhiro Kiyotaki, 2008. "Liquidity, Business Cycles, and Monetary Policy," 2008 Meeting Papers 35, Society for Economic Dynamics.
- Mastromarco, Camilla & Woitek, Ulrich, 2007. "Regional business cycles in Italy," Computational Statistics & Data Analysis, Elsevier, vol. 52(2), pages 907-918, October.
- Vasco M.Carvalho & Andrew C.Harvey, 2002.
"Growth, Cycles and Convergence in US Regional Time Series,"
Cambridge Working Papers in Economics
0221, Faculty of Economics, University of Cambridge.
- Carvalho, Vasco M. & Harvey, Andrew C., 2005. "Growth, cycles and convergence in US regional time series," International Journal of Forecasting, Elsevier, vol. 21(4), pages 667-686.
- Basile, Roberto, 2001. "Export behaviour of Italian manufacturing firms over the nineties: the role of innovation," Research Policy, Elsevier, vol. 30(8), pages 1185-1201, October.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa12p84. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.