Understanding Firm Dynamics with Daily Data

Lukas Hack () and Davud Rostam-Afschar
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Lukas Hack: University of Mannheim

No 17882, IZA Discussion Papers from IZA Network @ LISER

Abstract: How do firms’ plans and expectations respond to macroeconomic shocks? We run a daily survey of German firms over the past three years. We randomize daily invitations, delivering a stable composition of firms. This allows constructing daily time series and estimating dynamic aggregate causal effects. These estimates capture firms’ responsiveness conditional on the recent economic environment, making them informative for policymakers. We examine oil supply, monetary policy, and forward guidance shocks, finding that firms’ plans, especially price-setting plans, respond within days to oil supply and monetary policy shocks but not to forward guidance. Finally, we investigate firm heterogeneity and expectations.

Keywords: oil supply; monetary policy; firms; daily data; inflation surge (search for similar items in EconPapers)
JEL-codes: C83 E31 E43 E52 E58 (search for similar items in EconPapers)
Date: 2025-04
New Economics Papers: this item is included in nep-mac and nep-mon
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Related works:
Working Paper: Understanding Firm Dynamics with Daily Data (2024)
Working Paper: Understanding Firm Dynamics with Daily Data (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp17882

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