The German Manufacturing Sector is a Granular Economy

Research output: Working paperWorking papers


Using the approach suggested by Gabaix (Econometrica 2011) 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.
Original languageGerman
Place of PublicationLüneburg
PublisherInstitut für Volkswirtschaftslehre der Universität Lüneburg
Number of pages12
Publication statusPublished - 11.2011