Template-Type: ReDIF-Article 1.0

Author-Name: Norbert Czinkán
Author-Workplace-Name: Candidate at the University of Alicante
Author-Email: nczinkan@ua.es

Title: The Role of Individual Firms in Aggregate
 Fluctuations: Evidence from Hungary

Abstract: This paper investigates the role of activities by Hungarian firms in generating
aggregate fluctuations for the time period 2000–2013. The paper decomposes
aggregated sales volatility into a macro-sectoral and firm-specific component
and finds that shocks to individual firms contribute significantly to aggregate
fluctuations. The relative contribution of idiosyncratic shocks to sales volatility at
the aggregate level is 55.5 per cent for the whole economy and 56.4 per cent for
the manufacturing sector. The main mechanism through which firm fluctuations
manifest themselves in aggregate fluctuations is input–output linkages.

Classification-JEL: E32, F12, F14, F41
Keywords: Aggregate fluctuations, Firm-level shocks, Macro-sectoral shocks
Pages: 40–63
Volume: 16
Issue: 2
Year: 2017
File-URL: http://english.hitelintezetiszemle.hu/letoltes/the-role-of-individual-norbert-czinkan.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:16:y:2017:i:2:p:40-63