DISTORTIONS IN PRODUCTION NETWORKS

• 成果类型: Article
• 署名作者: Bigio, Saki; La'O, Jennifer
• 署名单位: University of California System; University of California Los Angeles; National Bureau of Economic Research; Columbia University
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1093/qje/qjaa018
• 发表日期: 2020
• 页码: 2187-2253
• 关键词: aggregate; shocks; origins; GROWTH

摘要

How does an economy's production structure determine its macroeconomic response to sectoral distortions? We study a static, multisector framework in which production is organized in an input-output network and production decisions are distorted. Sectoral distortions manifest at the aggregate level via two channels: total factor productivity (TFP) and the labor wedge. We show that near efficiency, distortions have zero first-order effects on TFP and nonzero first-order effects on the labor wedge, and that a sufficient statistic for the latter are the Domar weights. We thereby provide a Hulten-like theorem for the aggregate effects of sectoral distortions. A quantitative application of the model to the 2008-09 financial crisis suggests that the U.S. input-output structure amplified financial distortions by roughly a factor of two during the crisis.