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The Brazilian granular business cycle

Author

Listed:
  • Murilo Silva

    (Federal University of Santa Catarina)

  • Sergio Da Silva

    (Federal University of Santa Catarina)

Abstract

We investigate whether the granular hypothesis holds for the Brazilian business cycle and find that idiosyncratic shocks to net revenues of the top 100 companies explain about one-third of GDP fluctuations for annual data. Quarterly data cannot dismiss the granular hypothesis either. However, the granular hypothesis seems to break down after the 2008 financial crisis.

Suggested Citation

  • Murilo Silva & Sergio Da Silva, 2020. "The Brazilian granular business cycle," Economics Bulletin, AccessEcon, vol. 40(1), pages 463-472.
    • Handle: RePEc:ebl:ecbull:eb-20-00022
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    File URL: http://www.accessecon.com/Pubs/EB/2020/Volume40/EB-20-V40-I1-P40.pdf
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    References listed on IDEAS

    as
    1. Xavier Gabaix, 2011. "The Granular Origins of Aggregate Fluctuations," Econometrica, Econometric Society, vol. 79(3), pages 733-772, May.
    2. Blanco-Arroyo, Omar & Ruiz-Buforn, Alba & Vidal-Tomás, David & Alfarano, Simone, 2018. "On the determination of the granular size of the economy," Economics Letters, Elsevier, vol. 173(C), pages 35-38.
    3. Fornaro, Paolo & Luomaranta, Henri, 2018. "Aggregate fluctuations and the effect of large corporations: Evidence from Finnish monthly data," Economic Modelling, Elsevier, vol. 70(C), pages 245-258.
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    Cited by:

    1. Maia, Adriano & Oliveira, Guilherme De & Matsushita, Raul & Da Silva, Sergio, 2021. "The granularity of the Brazilian banking market," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    2. Leon Esquierro & Sergio Da Silva, 2024. "Is the Brazilian labor market granular?," Economics Bulletin, AccessEcon, vol. 44(2), pages 576-585.
    3. Adriano Maia & Guilherme De Oliveira & Raul Matsushita & Sergio Da Silva, 2023. "Granular banks and corporate investment," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 47(3), pages 586-599, September.
    4. Leon Esquierro & Sergio Da Silva, 2024. "Granular Cities," Economies, MDPI, vol. 12(7), pages 1-34, July.
    5. Jorge Miranda‐Pinto & Yuanting Shen, 2019. "A Granular View of the Australian Business Cycle," The Economic Record, The Economic Society of Australia, vol. 95(311), pages 407-424, December.

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    More about this item

    Keywords

    Business cycle theory; Idiosyncratic micro-level shocks; Granularity;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • D2 - Microeconomics - - Production and Organizations

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