Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2021-05-03
Revision-Date: 2021-10-19
Number: 21-036/III
Author-Name: Daan Opschoor
Author-Workplace-Name: Erasmus University Rotterdam
Author-Name: Dick van Dijk
Author-Workplace-Name: Erasmus University Rotterdam
Author-Name: Philip Hans Franses
Author-Workplace-Name: Erasmus University Rotterdam
Title: Heterogeneity in Manufacturing Growth Risk
Abstract: We analyze differences in output growth risk with respect to financial conditions across U.S. manufacturing industries. Using a multi-level quantile regression approach,we find strong heterogeneity in growth risk, particularly between the more vulnerable durable goods sector and the more resilient nondurable goods sector. Moreover, we show that industry characteristics signifcantly explain these differences.Large, or material intensive durable goods producing, or energy intensive nondurable goods producing industries are more vulnerable to adverse financial conditions, while industries engaging in labor hoarding, or with a high capital or
overhead labor intensity are less susceptible.
Classification-JEL: C21, E32, E44. L16, L60
Keywords: Downside risk, business cycle, quantile regression, manufacturing, financial conditions
File-URL: https://papers.tinbergen.nl/21036.pdf
File-Format: application/pdf
File-Size: 11.980.254 bytes
Handle: RePEc:tin:wpaper:20210036