On the emergence of scale-free production networks

Stanislao Gualdi and Antoine Mandel

Journal of Economic Dynamics and Control, 2016, vol. 73, issue C, 61-77

Abstract: We propose a simple dynamical model for the formation of production networks among monopolistically competitive firms. The model subsumes the standard general equilibrium approach à la Arrow–Debreu but displays a wide set of potential dynamic behaviors. It robustly reproduces key stylized facts of firms׳ demographics. Our main result is that competition between intermediate good producers generically leads to the emergence of scale-free production networks.

Keywords: C67; D50; L16; Production network; Scale-free networks; Firms demographics; Distribution of firms׳ size; General equilibrium; Monopolistic competition (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Related works:
Working Paper: On the emergence of scale-free production networks (2016)
Working Paper: On the emergence of scale-free production networks (2016)
Working Paper: On the emergence of scale-free production networks (2016)
Working Paper: On the emergence of scale-free production networks (2016)
Working Paper: On the emergence of scale-free production networks (2015)
Working Paper: On the emergence of scale-free production networks (2015)
Working Paper: On the emergence of scale-free production networks (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:73:y:2016:i:c:p:61-77

DOI: 10.1016/j.jedc.2016.09.012

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