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Firm-specific Shocks and Aggregate Fluctuations in the Canadian Manufacturing Sector, 2000 to 2012

Author

Listed:
  • Karasik, Leonid
  • Tomlin, Ben
  • Leung, Danny

Abstract

In order to understand what drives aggregate fluctuations, many macroeconomic models point to aggregate shocks and discount the contribution of firm-specific shocks. Recent research from other developed countries, however, has found that aggregate fluctuations are in part driven by shocks to large firms. Using data on Canadian firms from the T2-LEAP database, which links financial statements from firms? Corporate Income Tax Return with employment data from the Longitudinal Employment Analysis Program, this paper examines the contribution of large firms to industry-level fluctuations in gross output, investment and employment in the manufacturing sector.

Suggested Citation

  • Karasik, Leonid & Tomlin, Ben & Leung, Danny, 2016. "Firm-specific Shocks and Aggregate Fluctuations in the Canadian Manufacturing Sector, 2000 to 2012," Analytical Studies Branch Research Paper Series 2016384e, Statistics Canada, Analytical Studies Branch.
  • Handle: RePEc:stc:stcp3e:2016384e
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    Keywords

    Business performance and ownership; Economic accounts; Manufacturing;
    All these keywords.

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