Asymmetry Reversals and the Business Cycle

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.


Issue Date:
2013-05
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/151531
PURL Identifier:
http://purl.umn.edu/151531
Total Pages:
29
JEL Codes:
C21; E32
Series Statement:
ES
54.2013




 Record created 2017-04-01, last modified 2019-08-29

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