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dc.contributor.authorBachmann, Ruedigeren_US
dc.contributor.authorBayer, Christianen_US
dc.date.accessioned2009-07-20en_US
dc.date.accessioned2009-09-07T14:41:14Z-
dc.date.available2009-09-07T14:41:14Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/27743-
dc.description.abstractUsing a unique German firm-level data set, this paper is the first to jointly study the cyclical properties of the cross-sections of firm-level real value added and Solow residual innovations, as well as capital and employment adjustment. We find two new business cycle facts: 1) The cross-sectional standard deviation of firm-level innovations in the Solow residual, value added and employment is robustly and significantly countercyclical. 2) The cross-sectional standard deviation of firm-level investment is procyclical. We show that a heterogeneousfirm RBC model with quantitatively realistic countercyclical innovations in the firm-level Solow residual and non-convex adjustment costs calibrated to the non-Gaussian features of the steady state investment rate distribution, produces investment dispersion that positively comoves with the cycle, with a correlation coefficient of 0.65, compared to 0.61 in the data. We argue more generally that the cross-sectional business cycle dynamics impose tight empirical restrictions on structural parameters and stochastic properties of driving forces in heterogeneousfirmmodels, and are therefore paramount in the calibration of these models.en_US
dc.language.isoengen_US
dc.publisherDt. Bundesbank Frankfurt, M.en_US
dc.relation.ispartofseriesDiscussion Paper Series 1: Economic Studies 2009,17en_US
dc.subject.jelE20en_US
dc.subject.jelE22en_US
dc.subject.jelE30en_US
dc.subject.jelE32en_US
dc.subject.ddc330en_US
dc.subject.keywordSs modelen_US
dc.subject.keywordRBC modelen_US
dc.subject.keywordcross-sectional firm dynamicsen_US
dc.subject.keywordlumpy investmenten_US
dc.subject.keywordcountercyclical risken_US
dc.subject.keywordaggregate shocksen_US
dc.subject.keywordidiosyncratic shocksen_US
dc.subject.keywordheterogeneous firms.en_US
dc.subject.stwReal Business Cycleen_US
dc.subject.stwProduktivitäten_US
dc.subject.stwSchocken_US
dc.subject.stwKonjunkturen_US
dc.subject.stwRisikoen_US
dc.subject.stwInnovationen_US
dc.subject.stwInvestitionen_US
dc.subject.stwDynamisches Gleichgewichten_US
dc.subject.stwTheorieen_US
dc.subject.stwDeutschlanden_US
dc.titleThe cross-section of firms over the business cycle: new facts and a DSGE explorationen_US
dc.typeWorking Paperen_US
dc.identifier.ppn605021503en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp1:200917-
Appears in Collections:Discussion Paper Series 1: Economic Studies, Deutsche Bundesbank

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