Dispersion over the business cycle: Passthrough, productivity, and demand

Arbeitspapier

We characterize the dispersion of firm-level productivity and demand shocks using Swedish microdata including prices and utilization and analyse the consequences for firms and the aggregate economy. Demand dispersion increases by more than TFPQ dispersion in recessions. Productivity shocks pass through incompletely to prices and have limited effect on sales dispersion. Demand shocks explain most of the variation in sales dispersion. In a heterogeneousfirm model matching the micro facts, demand dispersion has unambiguously negative effects on output via a "wait and see" channel. Productivity dispersion does not generate "wait and see" effects, but affects output negatively by inducing markup dispersion.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Sveriges Riksbank Working Paper Series ; No. 414

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Firm Behavior: Theory ; Firm Behavior: Empirical Analysis ; Criteria for Decision-Making under Risk and Uncertainty ; Business Fluctuations; Cycles ; Production, Pricing, and Market Structure; Size Distribution of Firms
• Thema: demand estimation ; productivity ; variable markups ; business cycles ; dispersion ; uncertainty ; passthrough ; adjustment costs

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Carlsson, Mikael ; Clymo, Alex ; Joslin, Knut-Eric
• Ereignis: Veröffentlichung
• (wer): Sveriges Riksbank
• (wo): Stockholm
• (wann): 2022

Weitere Informationen

• Handle: http://hdl.handle.net/10419/272871
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ