The German Manufacturing Sector is a Granular Economy
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Chronological data
Date of first publication2011-11-04
Date of publication in PubData 2025-08-06
Language of the resource
English
Abstract
Using the approach suggested by Gabaix this paper demonstrates that idiosyncratic shocks in the largest firms are important for an understanding of aggregate volatility in German manufacturing industries. The implications of this finding for theoretical and empirical research and for economic policy are discussed.
Keywords
Power Law; Idiosyncratic Shocks; Granular Residual; Germany
Series title
Number of the series contribution
219