TY  - JOUR
AU  - Comin,Diego
AU  - Mulani,Sunil
TI  - Diverging Trends in Macro and Micro Volatility: Facts
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10922
PY  - 2004
Y2  - November 2004
UR  - http://www.nber.org/papers/w10922
L1  - http://www.nber.org/papers/w10922.pdf
N1  - Author contact info:
Diego A. Comin
Harvard Business School
Soldiers Field
Boston, MA 02163
Tel: 617/495-5011
E-Mail: dcomin@hbs.edu

Sunil Mulani
AB  - This paper documents the diverging trends in volatility of the growth rate of sales at the aggregate and firm level. We establish that the upward trend in micro volatility is not simply driven by a compositional bias in the sample studied. We argue that this new fact sheds some shadows on the proposed explanations for the decline in aggregate volatility and that, given the symmetry of the diverging trends at the micro and macro level, a common explanation is likely. We conclude by describing one such theory.
ER  -