Bachmann, Ruediger; Bayer, Christian - 2009
new business cycle facts: 1) The cross-sectional standard deviation of firm-level innovations in the Solow residual, value … correlation coefficient of 0.58, compared to 0.45 in the data. We argue more generally that the cross-sectional business cycle … state investment rate distribution, produces investment dispersion that positively comoves with the cycle, with a …