From Micro to Macro via Production Networks

Vasco Carvalho

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: 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 usefully combined to shed light on comovement and aggregate fluctuations.

Keywords: Production Networks; Comovement; Business Cycles; Input-Output Linkages. (search for similar items in EconPapers)
Date: 2014-10-17
New Economics Papers: this item is included in nep-hme, nep-pr~, nep-mac and nep-net
Note: vmpmdc2
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Citations: View citations in EconPapers (287)

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Related works:
Journal Article: From Micro to Macro via Production Networks (2014)
Working Paper: From micro to macro via production networks (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:1467

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