Firms' Internal Networks and Local Economic Shocks

• 成果类型: Article
• 署名作者: Giroud, Xavier; Mueller, Holger M.
• 署名单位: Columbia University; National Bureau of Economic Research; Center for Economic & Policy Research (CEPR); New York University; European Corporate Governance Institute
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20170346
• 发表日期: 2019
• 页码: 3617-3649
• 关键词: house prices; capital-markets; cash flow; INVESTMENT; transmission; propagation; consumption; COMPETITION; adjustment; CRISIS

摘要

Using confidential establishment-level data from the US Census Bureau's Longitudinal Business Database, this paper documents how local shocks propagate across US regions through firms' internal networks of establishments. Consistent with a model of optimal within-firm resource allocation, we find that establishment-level employment is sensitive to shocks in distant regions in which the establishment's parent firm is operating, and that the elasticity with respect to such shocks increases with the firm's financial constraint. At the aggregate regional level, we find that aggregate county-level employment is sensitive to shocks in distant counties linked through firms' internal networks.