Before revision:  We take a structural equation modeling, and show that a large proportion of fluctuation in the average log growth rate of firms can be explained by the network and that link renewal by firms decreases the standard deviation of the log growth rate.
After revision:  We take a structural equation modeling, and show that a large proportion of fluctuation in the average log growth rate of firms can be explained by the asymmetry in cost between severing a link and link formation. We also investigate the role of the network in aggregate fluctuations and show that at least 37