Replication data for: Large Firm Dynamics and the Business Cycle
Principal Investigator(s): View help for Principal Investigator(s) Vasco M. Carvalho; Basile Grassi
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
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| results_final | 10/12/2019 05:12:AM | ||
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text/plain | 14.6 KB | 10/12/2019 01:12:AM |
Project Citation:
Carvalho, Vasco M., and Grassi, Basile. Replication data for: Large Firm Dynamics and the Business Cycle. Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113096V1
Project Description
Summary:
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Do large firm dynamics drive the business cycle? We answer this question by developing a quantitative theory of aggregate fluctuations caused by firm-level disturbances alone. We show that a standard heterogeneous firm dynamics setup already contains in it a theory of the business cycle, without appealing to aggregate shocks. We offer an analytical characterization of the law of motion of the aggregate state in this class of models, the firm size distribution, and show that aggregate output and productivity dynamics display: (i) persistence, (ii) volatility, and (iii) time-varying second moments. We explore the key role of moments of the firm size distribution, and, in particular, the role of large firm dynamics, in shaping aggregate fluctuations, theoretically, quantitatively, and in the data.
Scope of Project
JEL Classification:
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D21 Firm Behavior: Theory
D22 Firm Behavior: Empirical Analysis
D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
E32 Business Fluctuations; Cycles
L11 Production, Pricing, and Market Structure; Size Distribution of Firms
D21 Firm Behavior: Theory
D22 Firm Behavior: Empirical Analysis
D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
E32 Business Fluctuations; Cycles
L11 Production, Pricing, and Market Structure; Size Distribution of Firms
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