NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Complementarities and Comovements

John Shea

NBER Working Paper No. 5305
Issued in October 1995
NBER Program(s):   ME

Short-run interindustry comovement may be due either to common shocks or to complementarities that propagate shocks across sectors. This paper assesses the importance of input-output linkages, aggregate activity spillovers, and local activity spillovers to comovement in postwar US manufacturing. I find that input-output linkages and local activity spillovers are important to comovement, while aggregate activity spillovers are not important. I find that complementarities are important to aggregate volatility, even after I remove observable aggregate shocks from the data. Local spillovers are particularly important, explaining between 15 and 36 percent of manufacturing employment volatility.

download in pdf format
   (339 K)

email paper

This paper is available as PDF (339 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5305

Published: Shea, John S. "Complementarities And Comovements," Journal of Money, Credit and Banking, 2002, v34(2,May), 412-434.

Users who downloaded this paper also downloaded these:
Shea w5304 Comovement in Cities
Shea w6632 What Do Technology Shocks Do?
Shea What Do Technology Shocks Do?
Foerster, Sarte, and Watson w14389 Sectoral vs. Aggregate Shocks: A Structural Factor Analysis of Industrial Production
Acemoglu, Johnson, Querubin, and Robinson w14033 When Does Policy Reform Work? The Case of Central Bank Independence
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us