On the emergence of scale-free production networks

Stanislao Gualdi () and Antoine Mandel
Additional contact information
Stanislao Gualdi: Chair of Quantitative Finance, Laboratoire de Mathématiques Appliquées aux Systèmes - Ecole Centrale de Paris

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: Building upon the standard model of monopolistic competition on the market for intermediary goods, we propose a simple dynamical model of the formation of production networks. The model subsumes the standard general equilibrium approach and robustly reproduces key stylized facts of firms' demographics. Firms' growth rates are negatively correlated with size and follow a core double-exponential distribution followed by fat tails. Firms' size and production network are power-law distributed. These properties emerge because continuous inflow of new firms shifts away the model from a steady state to a disequilibrium regime in which firms get scaled according to their resistance to competitive forces

Keywords: Production network; network; network formation, scale-free networks; firms demographics; distribution of firms' size; Zipf law; general equilibrium; monopolistic competition; disequilibrium (search for similar items in EconPapers)
JEL-codes: D57 D85 L16 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2015-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
ftp://mse.univ-paris1.fr/pub/mse/CES2015/15060.pdf (application/pdf)

Related works:
Journal Article: 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 (2016)
Working Paper: On the emergence of scale-free production networks (2015)
Working Paper: On the emergence of scale-free production networks (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:15060

Access Statistics for this paper

More papers in Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne Contact information at EDIRC.
Bibliographic data for series maintained by Lucie Label ().