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.