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product diversification and the stability of sales and employment. We find that contrary to portfolio theoretic considerations … more diversified firms exhibit a higher variability of sales and employment. However, the effects are negligibly small from …
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This paper uses an approach recently suggested by Gabaix (Eonometrica 2011) to investigate for the first time the role of idiosyncratic shocks to the largest firms in the dynamics of imports by firms from manufacturing industries. For Germany we find evidence that imports are power-law...
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