The within-distribution business cycle dynamics of German firms

Sebastian Weber and Jörg Döpke

No 2006,29, Discussion Paper Series 1: Economic Studies from Deutsche Bundesbank

Abstract: We analyse stylised facts for Germany's business cycle at the firm level. Based on longitudinal firm-level data from the Bundesbank's balance sheet statistics covering, on average, 55,000 firms per year from 1971 to 1998, we estimate transition probabilities of a firm in a certain real sales growth regime switching to another regime in the next period, e.g. whether a firm that has witnessed a high growth rate is likely to stay in a regime of high growth or is bound to switch in a regime of low growth in the subsequent period. We find that these probabilities depend on the business cycle position.

Keywords: business cycles; firm growth; Markov chains (search for similar items in EconPapers)
JEL-codes: D21 D92 E32 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-bec and nep-mac
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Citations: View citations in EconPapers (14)

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Related works:
Journal Article: The within-distribution business cycle dynamics of German firms (2010)
Working Paper: The Within-Distribution Business Cycle Dynamics of German Firms (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdp1:4758

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