Firm-level hubs and impact of granularity on the propagation of shocks and aggregate output fluctuations in a small open economy KU Leuven
In modern economics it is believed that individual firms have a negligible impact on the macro economy as shocks to individual firms will average out. Recent research however shows a highly skewed distribution of firms with regard to size: 20% of firms account for 80% of total sales, employment and exports. In small countries this ratio is closer to 10:90. Using complete company-level data for two small economies, Belgium and Slovenia, our ...