Firms' Internal Networks and Local Economic Shocks

@article{Giroud2017FirmsIN,
  title={Firms' Internal Networks and Local Economic Shocks},
  author={Xavier Giroud and H. Mueller},
  journal={IO: Empirical Studies of Firms & Markets eJournal},
  year={2017}
}
  • Xavier Giroud, H. Mueller
  • Published 2017
  • Business
  • IO: Empirical Studies of Firms & Markets eJournal
  • This paper shows that firms spread the adverse impacts of local employment shocks across regions through their internal networks of establishments. Linking confidential micro data at the establishment level from the U.S. Census Bureau’s Longitudinal Business Database to ZIP code-level variation in house price changes during the Great Recession, we find that local establishment-level employment responds strongly to employment shocks in other regions in which the firm has establishments… CONTINUE READING
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