Rigid production networks

• 成果类型: Article
• 署名作者: Pellet, Thomas; Tahbaz-Salehi, Alireza
• 署名单位: Northwestern University; Northwestern University; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2023.05.008
• 发表日期: 2023
• 页码: 86-102
• 关键词: production networks; Quantity adjustment frictions; Informational frictions

摘要

This paper studies a production network model with quantity rigidities and informational frictions, where (i) firms may be restricted in how effectively they can adjust (some or all of) their intermediate input quantities in response to changes in the economic environ-ment and (ii) they need to choose their quantities under incomplete information about the realizations of shocks. Our characterization results show that these two frictions lead to a reduction in aggregate output, as firms may find it optimal to rely more heavily on less volatile suppliers, even if it comes at the cost of forgoing more efficient ones. We also find that the interaction between informational frictions and quantity rigidities dampens the impact of productivity and aggregate demand shocks on aggregate output, while increas-ing the inflationary effects of positive shocks to nominal aggregate demand. The magni-tudes of these effects depend on the distribution of the two frictions over the production network.