DP13421 Production Networks: A Primer

Author(s): Vasco M Carvalho, Alireza Tahbaz-Salehi
Publication Date: December 2018
Keyword(s): input-output linkages, networks, shock propagation
Programme Areas: Monetary Economics and Fluctuations, Macroeconomics and Growth
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=13421

This article reviews the literature on production networks in macroeconomics. It presents the theoretical foundations for the role of input-output linkages as a shock propagation channel and as a mechanism for transforming microeconomic shocks into macroeconomic fluctuations. The article also provides a brief guide to the growing literature that explores these themes empirically and quantitatively.