Distante, Roberta Petrella, Ivan Santoro, Emiliano
Year of Publication:
Nota di Lavoro, Fondazione Eni Enrico Mattei 54.2013
The cross-sectional dynamics of the U.S. business cycle is examined through the lens of quantile regression models. Conditioning the quantiles of firm-level growth to different measures of technological change highlights a deep connection between counter-cyclical skewness and the transmission of aggregate disturbances. Asymmetry reversals emerge as the dominant source of cyclical variation in the probability density, generating a powerful amplification of aggregate shocks to firm technology. Designing and validating heterogeneous firm business cycle models should necessarily account for this empirical finding.
Corporate Growth Conditional Quantiles Business Cycles Asymmetry Reversals