The contribution of firm-level shocks to aggregate fluctuations: The case of Sweden

We use annual observations on sales at the firm-destination level of all Swedish firms for 1997-2008 to examine the contribution of firm-level shocks to aggregate fluctuations. The firm-specific and sector destination components each contribute about equally to aggregate sales volatility. For export volatility, the firm-specific component is more important. The analysis is conducted so as to ease a comparison to earlier results using French data. Compared to the French case the Swedish data show greater granularity and greater overall volatility, but also a lower firm-level contribution to aggregate volatility. (C) 2016 The Authors. Published by Elsevier B.V.