Firms and Aggregate Dynamics
Bibliographic Data
| ID | 19314041 |
|---|---|
| Authors | Francesco Franco (0000-0002-9869-2820, Universidade Nova de Lisboa), Thomas Philippon (0000-0003-0503-8115, Center for Economic and Policy Research) |
| Year | 2007 |
| Volume | 89 |
| Issue | 4 |
| Pages | 587-600 |
| Publication date | 2007-11-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Review of Economics and Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0034-6535 • E-ISSN: 1530-9142 |
| Publisher | MIT Press - Journals (PUBLISHER) |
| DOI | 10.1162/rest.89.4.587 |
| OpenAlex | W2039770290 |
| Language | EN |
| Citations received | 4 |
| References cited | 14 |
We investigate the role of permanent and transitory shocks for firms and aggregate dynamics. We find that permanent shocks to productivity and permanent shifts in the composition of output explain at least four-fifths of firms' dynamics. However, these permanent shocks are almost uncorrelated across firms and are therefore less relevant for aggregate dynamics. Transitory shocks, on the other hand, are not very important at the firm level, but they account for most of the volatility of aggregate hours and output, because they are significantly correlated across firms. Finally, we try to make some progress on the interpretation of the shocks
Aggregate (composite) · Dynamics (music) · Econometrics · Economics · Macroeconomics · Monetary economics · Productivity · Statistics · Uncorrelated · Volatility (finance) · Complex Systems and Time Series Analysis · Economic theories and models · Mathematics · Monetary Policy and Economic Impact
| Citations per year | 0.29 |
|---|---|
| Citation span | 2012 - 2024 (13) |
| Highly cited | No |