2012 Fiscal Year Final Research Report
Firm-level volatility and business cycles
| Project/Area Number |
23730183
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| Research Category |
Grant-in-Aid for Young Scientists (B)
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| Allocation Type | Multi-year Fund |
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| Research Field |
Economic theory
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| Research Institution | Tohoku University |
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Principal Investigator |
OIKAWA Koki 東北大学, 大学院・経済学研究科, 准教授 (90468728)
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| Project Period (FY) |
2011 – 2012
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| Keywords | 企業ボラティリティ / 景気変動 |
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| Research Abstract |
This study examines the behaviors of firm-level volatility over business cycles, measured by real sales growth. Japanese firm-level data show that their volatility is countercyclical, whereas it is procyclical among the United States firms. We formulate a theoretical model that accounts for the opposite cyclical behaviors. The key driving factor behind the relationship is the relative magnitude of the fixed and marginal costs of bankruptcy. This study also examines the welfare and policy implication about the optimal bankruptcy cost structure.
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Research Products
(2 results)
