EconPapers    
Economics at your fingertips  
 

Skewed Business Cycles

Nicholas Bloom (), Fatih Guvenen () and Sergio Salgado
Additional contact information
Sergio Salgado: University of Minnesota

No 1621, 2016 Meeting Papers from Society for Economic Dynamics

Abstract: This paper studies how the distribution of the growth rate of firm-level variables (sales, profit, inventories, and employment) changes over the business cycle. Using a panel of Compustat firms from 1964 to 2013 we find that, in addition to the well-documented counter cyclicality in dispersion, the third moment---skewness---is strongly pro cyclical. This happens because the distribution of negative growth rates expands during recessions while the distribution of positive growth rates changes little. In fact, this pattern---of lower tail greatly expanding during recessions---is also the main driver behind the counter cyclicality of dispersion. These results are robust to different selection criteria, across firm size categories, and across industries. We also analyze the distribution of macroeconomic outcomes such as GDP growth and stock returns using a panel of developed and developing countries. Here we also find evidence of declining skewness during periods of low economic activity.

New Economics Papers: this item is included in nep-bec, nep-ent and nep-mac
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
https://economicdynamics.org/meetpapers/2016/paper_1621.pdf (application/pdf)

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:red:sed016:1621

Access Statistics for this paper

More papers in 2016 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Series data maintained by Christian Zimmermann ().

 
Page updated 2017-10-06
Handle: RePEc:red:sed016:1621