Paper #1449

Títol:

From micro to macro via production networks

Autor:

Vasco Carvalho

Data:

Octubre 2014

Resum:

A modern economy is an intricately linked web of specialized production units, each relying on the flow of inputs from their suppliers to produce their own output which, in turn, is routed towards other downstream units. In this essay, I argue that this network perpective on production linkages can offer novel insights on the sources of aggregate fluctuations. To do this, I show (i) how production networks can be mapped to a standard general equilibrium setup; (ii) how to approach input-output from this networked perspective and (iii) how theory and data on production networks can be usefuly combined to shed light on comovement and aggregate fluctuations.

Paraules clau:

Production Networks; Comovement; Business Cycles; Input-Output Linkages.

Àrea de Recerca:

Macroeconomia i Economia Internacional

Publicat a:

Journal of Economic Perspectives, 28 (4), 23-48, 2014

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