Event
Nicolas Vincent (HEC Montreal): "The Empirical Distribution of Firm Dynamics and Its Macro Implications"
Tuesday, September 6, 2022 12:00to13:00
Leacock Building
Room 429, 855 rue Sherbrooke Ouest, Montreal, QC, H3A 2T7, CA
"The Empirical Distribution of Firm Dynamics and Its Macro Implications"
Nicolas Vincent, HEC Montreal
September 6, 2022, 12:00 to 1:00 PM
Leacock 429
Abstract:
Heterogeneous firm models are central to the modern economics literature. In this context, we revisit a central feature of these models: the nature of idiosyncratic shocks faced by firms. Using firm-level data, we document that the commonly assumed parametric distributions of the shocks that firms face differ in important ways from observed dynamics. We embed these findings into a general equilibrium heterogeneous firm model and show they have a first-order effect on the response of the economy to aggregate disturbances.