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A Note on the Granular Nature of Imports in German Manufacturing Industries

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  • Wagner Joachim

    (Leuphana University Lueneburg, Germany, and CESIS, KTH, Stockholm, Sweden)

Abstract

This paper uses an approach recently suggested by Gabaix (Eonometrica 2011) to investigate for the first time the role of idiosyncratic shocks to the largest firms in the dynamics of imports by firms from manufacturing industries. For Germany we find evidence that imports are power-law distributed and that the distribution of imports in the industries can be characterised as fat-tailed. Results show that idiosyncratic shocks to very large firms are important for the import dynamics in 2010/2011 but not in 2009/2010.

Suggested Citation

  • Wagner Joachim, 2014. "A Note on the Granular Nature of Imports in German Manufacturing Industries," Review of Economics, De Gruyter, vol. 65(3), pages 241-252, December.
    • Handle: RePEc:lus:reveco:v:65:y:2014:i:3:p:241-252
    DOI: 10.1515/roe-2014-0303
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    More about this item

    Keywords

    Imports; power law; granular residual; Germany;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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