Holly, Sean, Petrella, Ivan and Santoro, Emiliano (2013) Aggregate fluctuations and the cross-sectional dynamics of firm growth. Journal of the Royal Statistical Society: Series A (Statistics in Society), 176 (2). pp. 459-479. doi:10.1111/j.1467-985X.2012.01047.x ISSN 0964-1998.

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Abstract

The paper explores time variation in the distribution of firm level growth of total sales. Three novel results are reported. First, firms on the left-hand side of the distribution, i.e. firms that are growing more slowly or declining, are typically more responsive to aggregate shocks than those on the right-hand side of the distribution. Second, trending behaviour in the volatility of firm growth is predominantly driven by increasing dispersion in the growth of highly performing firms. Third, shifts in the probability mass on either side of the mode may act as important propagators of business fluctuations. Financial frictions emerge as a mechanism that is capable of accounting for these facts.

Item Type:	Journal Article
Divisions:	Faculty of Social Sciences > Warwick Business School
Journal or Publication Title:	Journal of the Royal Statistical Society: Series A (Statistics in Society)
Publisher:	Wiley-Blackwell Publishing Ltd.
ISSN:	0964-1998
Official Date:	February 2013
Dates:	Date Event February 2013 Published 27 July 2012 Available 2 February 2012 Accepted
Volume:	176
Number:	2
Page Range:	pp. 459-479
DOI:	10.1111/j.1467-985X.2012.01047.x
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access

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