contribution is two-fold. First, we expand the theory of granularity to encompass the Bertrand competition frequently used in …

Does the mere presence of big banks affect macroeconomic outcomes? In this paper, we develop a theory of granularity …

Does the mere presence of big banks affect macroeconomic outcomes? In this paper, we develop a theory of granularity …

Does the structure of banking markets affect macroeconomic volatility and, if yes, is this link different in low … markets affects macroeconomic volatility. Our research has three main findings. First, we study the relevance of granular … effects: if the degree of market concentration in the banking sector is sufficiently high, idiosyncratic volatility at the …

, one potentially adverse effect of globalization is the possibility that business cycle volatility might increase. Rapid … to unstable international capital flows. At the same time, business cycle volatility in OECD countries seems to have been …

. -- Banking sector distress ; size effects ; shock propagation ; Granular Residual …

Stylized facts suggest that output volatility in OECD countries has declined in recent years. However, the causes and … structural breaks in the dynamics and the volatility of the real output process in Germany can be detected. We report evidence … that output volatility has declined in Germany. Yet, this decline in output volatility is not as clear-cut as it is in the …