Bremus, Franziska; Buch, Claudia M.; Russ, Katheryn N.; … - Verein für Socialpolitik - VfS - 2013
Does the mere presence of big banks affect macroeconomic outcomes? Gabaix (2011) shows that idosyncratic shocks can have aggregate effects if the distribution of firm sizes in manufacturing follows a power law distribution. Our contribution is two-fold. First, we expand the theory of granularity...