THE MICRO-ORIGINS OF BUSINESS CYCLES: EVIDENCE FROM GERMAN METROPOLITAN AREAS

Daniele F, Stüber H (2023)

Publication Type: Journal article

Publication year: 2023

Journal

Review of Economics and Statistics Massachusetts Institute of Technology Press (MIT Press): Economics Titles

Book Volume: 105

Pages Range: 70-85

Journal Issue: 1

DOI: 10.1162/rest_a_01005

Abstract

How large is volatility due to large firms? We answer this question through both reduced-form analysis and a calibration exercise. First, we exploit time and spatial variation across German cities and show that higher concentration is associated with more persistent local business cycles, and local concentration Granger causes local employment volatility. From a business cycle perspective, we find evidence in favor of granularity-driven recessions only. Next, we calibrate a structural model along the lines of Carvalho and Grassi (2019) and find that the more fat-tailed productivity distribution in bigger cities crucially depends also on the higher probability that firms will grow.

Authors with CRIS profile

Heiko Stüber Lehrstuhl für Volkswirtschaftslehre, insbesondere Makroökonomik

Involved external institutions

Banca d'Italia IT Italy (IT)

How to cite

APA:

Daniele, F., & Stüber, H. (2023). THE MICRO-ORIGINS OF BUSINESS CYCLES: EVIDENCE FROM GERMAN METROPOLITAN AREAS. Review of Economics and Statistics, 105(1), 70-85. https://doi.org/10.1162/rest_a_01005

MLA:

Daniele, Federica, and Heiko Stüber. "THE MICRO-ORIGINS OF BUSINESS CYCLES: EVIDENCE FROM GERMAN METROPOLITAN AREAS." Review of Economics and Statistics 105.1 (2023): 70-85.

BibTeX: Download