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Firms, International Trade, and Aggregate Fluctuations

Objective

This project will provide a detailed account of the role of individual firms in generating aggregate fluctuations using data covering the universe of French firms for the period 1990-2007, and highlight the importance of international trade in the analysis of of firm shocks and aggregate volatility. The project will complete six objectives. First, it will lead to the construction of a new firm-level dataset that merges firm domestic and export sales, along with other firm-level characteristics. Second, it will provide new methodology to identify firm-level idiosyncratic shocks by exploiting the export-orientation of firms, and estimate these shocks. Third, it will quantify the contribution of the idiosyncratic shocks to the volatility of aggregate sales growth. Fourth, it will measure the importance of firm-level interconnectedness in propagating idiosyncratic shocks into aggregate volatility. Fifth, it will estimate how a firm’s export and import orientations affect its exposure to shocks, as well as its ability to diversify risk. Sixth, it will quantify the implications of firms’ export and import orientations on aggregate volatility.

Field of science

  • /social sciences/economics and business/business and management/commerce

Call for proposal

FP7-PEOPLE-2013-IIF
See other projects for this call

Funding Scheme

MC-IIF - International Incoming Fellowships (IIF)

Coordinator

UNIVERSIDAD POMPEU FABRA
Address
Placa De La Merce, 10-12
08002 Barcelona
Spain
Activity type
Higher or Secondary Education Establishments
EU contribution
€ 223 002,20
Administrative Contact
Martín Eva (Ms.)