Resource title

The Microeconomics of Macroeconomic Asymmetries : Sectoral Driving Forces and Firm Level Characteristics

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Resource description

There is now considerable evidence that business cycle variation in output and employment in the U.S. di¤ers in expansions and contractions. We present nonparametric evidence that asymmetries are strongest in durable goods manufacturing. In a Markov switching framework, we find two leading indicators, consumer expectations and the term spread, act as important driving forces behind asymmetry. Cross sectional analysis, using firm level data, shows that plant and equipment expenditures, raw materials inventory holdings, and bankruptcy score increase the likelihood ratio index for asymmetry by more than 65%.

Resource author

Oleg Korenok, Bruce Mizrach, Stanislav Radchenko

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/23184

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Adapt according to the presented license agreement and reference the original author.