On the granularity of the German economy - first evidence from the top 100 companies panel database

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Applying the approach suggested by Gabaix (Econometrica 2011) this paper uses the newly available Top 100 Companies Panel Database for Germany to demonstrate that idiosyncratic shocks in the largest firms seem not to be important for an understanding of the aggregate volatility of the German economy. This evidence is in contrast with findings for other countries and it differs from earlier results for parts of the German economy.

Original languageEnglish
JournalApplied Economics Letters
Issue number21
Pages (from-to)1768 - 1771
Number of pages4
Publication statusPublished - 14.12.2020

    Research areas

  • Economics - Germany, granular residual, Idiosyncratic shocks