Discussion paper

DP13421 Production Networks: A Primer

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.


Carvalho, V and A Tahbaz-Salehi (2018), ‘DP13421 Production Networks: A Primer‘, CEPR Discussion Paper No. 13421. CEPR Press, Paris & London. https://cepr.org/publications/dp13421