Browsing Department of Economics by Subject "aggregate volatility"

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    • The Network Origins of Aggregate Fluctuations 

      Acemoglu, Daron; Carvalho, Vasco; Ozdaglar, Asuman; Tahbaz-Salehi, Alireza (Cambridge, MA: Department of Economics, Massachusetts Institute of Technology, 2011-10-20)
      This paper argues that in the presence of intersectoral input-output linkages, microeconomic idiosyncratic shocks may lead to aggregate fluctuations. In particular, it shows that, as the economy becomes more disaggregated, ...