Bibliograph

Detecting propagation effects by observing aggregate distributions, the case of lumpy investments, Luigi Guiso, Chaoqun Lai and Makoto Nirei

Type

Label

Detecting propagation effects by observing aggregate distributions, the case of lumpy investments, Luigi Guiso, Chaoqun Lai and Makoto Nirei

Language

eng

Abstract

By using an extensive panel data set of Italian firms, we show empirically that the fraction of firms that engage in a lumpy investment follows a non-normal, double-exponential distribution across region-year. We propose a simple sectoral model that generates the double-exponential distribution that arises from the complementarity of the firms' lumpy investments within a region. We calibrate the degree of complementarity by estimating an individual firm's behavior with the firm-level data. Simulations show that the degree of complementarity estimated at the firm level is consistent with the double-exponential fluctuations observed at the aggregate level

Bibliography note

Includes bibliographical references (pages 44-47)

Index

no index present

Literary Form

non fiction

Main title

Detecting propagation effects by observing aggregate distributions

Oclc number

851516924

Responsibility statement

Luigi Guiso, Chaoqun Lai and Makoto Nirei