01882cas a2200253 a 4500 AALejournalIMF018005 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484324806 1018-5941 BD-DhAAL BD-DhAAL Ebeke, Christian. The Granular Origins of Macroeconomic Fluctuations in Europe / Christian Ebeke, Kodjovi Eklou. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates the microeconomic origins of aggregate economic fluctuations in Europe. It examines the relevance of idiosyncratic shocks at the top 100 large firms (the granular shocks) in explaining aggregate macroeconomic fluctuations. The paper also assesses the strength of spillovers from large firms onto SMEs. Using firm-level data covering over 14 million firms and eight european countries (Austria, Belgium, Finland, France, Germany, Italy, Portugal and Spain), we find that: (i) 40 percent of the variance in GDP in the sample can be explained by idiosyncratic shocks at large firms; (ii) positive granular shocks at large firms spill over to domestic SMEs' output, especially if SMEs' balance sheets are healthy and if SMEs belong to the services and manufacturing sectors. Mode of access: Internet Eklou, Kodjovi. IMF Working Papers; Working Paper ; No. 2017/229 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/229/001.2017.issue-229-en.xml IMF e-Library