Firm-specific shocks and aggregate fluctuations / by Leonid Karasik, Danny Leung and Ben Tomlin.: FB3-5/2016-51E-PDF
"In order to understand what drives aggregate fluctuations, many macroeconomic models point to aggregate shocks and discount the contribution of firm-specific shocks. Recent research from other developed countries, however, has found that aggregate fluctuations are in part driven by idiosyncratic shocks to large firms. Using data on Canadian firms, this paper examines the contribution of large firms to industry-level fluctuations in gross output, investment and employment in the manufacturing sector. The data suggest that shocks to large firms can explain as much as 46% and 37% of the fluctuations in gross output and investment, respectively, but do not contribute to fluctuations in employment"--Abstract.
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| Department/Agency | Bank of Canada. |
|---|---|
| Title | Firm-specific shocks and aggregate fluctuations / by Leonid Karasik, Danny Leung and Ben Tomlin. |
| Series title | Staff Working Paper, 1701-9397 ; 2016-51 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | "November 2016." Includes bibliographical references. Abstract in French. |
| Publishing information | [Ottawa] : Bank of Canada, c2016. |
| Author / Contributor | Karasik, Leonid. Tomlin, Ben. Leung, Danny. |
| Description | ii, 15 p. |
| Catalogue number |
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| Subject terms | Manufacturing industry Market analysis Economic analysis |