A Dynamic Model of Input-Output Networks

• 成果类型: Article
• 署名作者: Liu, Ernest; Tsyvinski, Aleh
• 署名单位: Princeton University; Yale University
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdae012
• 发表日期: 2024
• 页码: 3608-3644
• 关键词: origins; GROWTH

摘要

We develop a dynamic model of input-output networks that incorporates adjustment costs of changing inputs. Our closed-form solution for the dynamics of the economy shows that temporary shocks to upstream sectors, whose output travels through long supply chains, have disproportionately significant welfare impact compared to affected sectors' Domar weights. We conduct a spectral analysis of the U.S. production network and reveal that the welfare impact of temporary sectoral shocks can be represented by a low-dimensional, 3-factor structure.