Arbeitspapier
Debunking the granular origins of aggregate fluctuations: From real business cycles back to Keynes
In this work we study the granular origins of business cycles and their possible underlying drivers. As shown by Gabaix (2011), the skewed nature of firm size distributions implies that idiosyncratic (and independent) firm-level shocks may account for a significant portion of aggregate volatility. Yet, we question the original view grounded on "supply granularity", as proxied by productivity growth shocks - in line with the Real Business Cycle framework -, and we provide empirical evidence of a "demand granularity", based on investment growth shocks instead. The role of demand in explaining aggregate fluctuations is further corroborated by means of a macroeconomic Agent-Based Model of the "Schumpeter meeting Keynes" family (Dosi et al., 2015). Indeed, the investigation of the possible microfoundation of RBC has led us to the identification of a sort of microfounded Keynesian multiplier.
- Language
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Englisch
- Bibliographic citation
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Series: LEM Working Paper Series ; No. 2018/19
- Classification
-
Wirtschaft
Computational Techniques; Simulation Modeling
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
Investment; Capital; Intangible Capital; Capacity
Business Fluctuations; Cycles
- Subject
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business cycles
granular residual
granularity hypothesis
agent-based models
firm dynamics
productivity growth
investment growth
- Event
-
Geistige Schöpfung
- (who)
-
Dosi, Giovanni
Napoletano, Mauro
Roventini, Andrea
Treibich, Tania
- Event
-
Veröffentlichung
- (who)
-
Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM)
- (where)
-
Pisa
- (when)
-
2018
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Dosi, Giovanni
- Napoletano, Mauro
- Roventini, Andrea
- Treibich, Tania
- Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM)
Time of origin
- 2018
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