 Price connectedness and input–output linkages: Evidence from ChinaYanyan Jia, Yi Fang, Zhongbo Jing and Faqin Lin Economic Modelling, 2022, vol. 116, issue C Abstract: In contrast to the aggregate level, prices at the industry level are flexible. Meanwhile, the majority of the studies on price connectedness through production networks have focused on the supply side and direct transmission, with less attention on the demand side and indirect transmission of price. Thus, this study constructs a network model and analyzes the spillover effect of price at the industry level by using China's supply-side producer price index and demand-side consumer price index from 2007 to 2019. The results show that the spillover effect from the supply-side price to the demand-side price is larger than vice versa. As for the other findings, direct input–output linkages between industries increase the intensity of price spillovers, while the aggregate effect of indirect price transmission has a greater influence on price connectedness than the effect of direct price transmission. Keywords: Price connectedness; Supply-side price; Demand-side price; Direct transmission; Indirect transmission (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:116:y:2022:i:c:s0264999322002383 DOI: 10.1016/j.econmod.2022.105997 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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