TY  - JOUR
AU  - Shea,John
TI  - Complementarities and Comovements
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5305
PY  - 1995
Y2  - October 1995
UR  - http://www.nber.org/papers/w5305
L1  - http://www.nber.org/papers/w5305.pdf
N1  - Author contact info:
John Shea
Department of Economics
University of Maryland
College Park, MD 20742
Tel: 301/405-3491
Fax: 301/405-3542
E-Mail: shea@econ.umd.edu
AB  - 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.
ER  -