Post by arfanho7 on Feb 27, 2024 6:59:42 GMT
Author Abstract The propagation of macroeconomic shocks through input output and geographic networks can be a powerful driver of macroeconomic fluctuations. We first exposit that in the presence of Cobb Douglas production functions and consumer preferences there is a specific pattern of economic transmission whereby demand side shocks propagate upstream to input supplying industries and supply side shocks propagate downstream to customer industries and that there is a tight relationship between the direct impact of a shock and the magnitudes of the downstream and the upstream indirect effects.
We then investigate the short run propagation of four different types of industry level shocks two demand side ones the exogenous component of the variation in industry imports from Hungary Phone Number China and changes in federal spending and two supply side ones TFP shocks and variation in knowledge ideas coming from foreign patenting . In each case we find substantial propagation of these shocks through the input output network with a pattern broadly consistent with theory. Quantitatively the network based propagation is larger than the direct effects of the shocks.
We also show quantitatively large effects from the geographic network capturing the fact that the local propagation of a shock to an industry will fall more heavily on other industries that tend to collocate with it across local markets. of various different types of shocks through economic networks and industry interlinkages could have first order implications for the macroeconomy. Paper Information Full Working Paper Text Working Paper Publication Date July HBS Working Paper Number Why Fierce Competitors Apple and Amazon Became ’Frenemies’ Over eReaders by Michael Blanding New research by Feng Zhu and colleagues reveals why sometimes it s better for fierce competitors like Apple and Amazon to work together.
We then investigate the short run propagation of four different types of industry level shocks two demand side ones the exogenous component of the variation in industry imports from Hungary Phone Number China and changes in federal spending and two supply side ones TFP shocks and variation in knowledge ideas coming from foreign patenting . In each case we find substantial propagation of these shocks through the input output network with a pattern broadly consistent with theory. Quantitatively the network based propagation is larger than the direct effects of the shocks.
We also show quantitatively large effects from the geographic network capturing the fact that the local propagation of a shock to an industry will fall more heavily on other industries that tend to collocate with it across local markets. of various different types of shocks through economic networks and industry interlinkages could have first order implications for the macroeconomy. Paper Information Full Working Paper Text Working Paper Publication Date July HBS Working Paper Number Why Fierce Competitors Apple and Amazon Became ’Frenemies’ Over eReaders by Michael Blanding New research by Feng Zhu and colleagues reveals why sometimes it s better for fierce competitors like Apple and Amazon to work together.