Diverging Trends in Aggregate and Firm Volatility

Diego Comin and Sunil Mulani

The Review of Economics and Statistics, 2006, vol. 88, issue 2, 374-383

Abstract: This note documents the diverging trends in volatility of the growth rate of sales at the aggregate and firm levels. We establish that the upward trend in firm volatility is not simply driven by a compositional bias in the sample studied.We argue that this new fact brings into question the proposed explanations for the decline in aggregate volatility and that, given the symmetry of the diverging trends at the micro and macro levels, a common explanation is likely. We conclude by describing one such theory. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (103)

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/rest.88.2.374 link to full text (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tpr:restat:v:88:y:2006:i:2:p:374-383

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().