Input Specificity and the Propagation of Idiosyncratic Shocks in Production Networks*

• 成果类型: Article
• 署名作者: Barrot, Jean-Noel; Sauvagnat, Julien
• 署名单位: Massachusetts Institute of Technology (MIT); Center for Economic & Policy Research (CEPR); Bocconi University; Bocconi University
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1093/qje/qjw018
• 发表日期: 2016
• 页码: 1543-1592
• 关键词: capital structure; aggregate shocks; linkages; LINKS; EMPLOYMENT; origins; event; FIRMS

摘要

This article examines whether firm-level idiosyncratic shocks propagate in production networks. We identify idiosyncratic shocks with the occurrence of natural disasters. We find that affected suppliers impose substantial output losses on their customers, especially when they produce specific inputs. These output losses translate into significant market value losses, and they spill over to other suppliers. Our point estimates are economically large, suggesting that input specificity is an important determinant of the propagation of idiosyncratic shocks in the economy.