Aggregate fluctuations in adaptive production networks

Arbeitspapier

We study production networks where firms' products can be described by a set of input and output characteristics, and links are formed only if the output characteristics of a seller match the input characteristics of a customer. We introduce a fully endogenous network formation model with monopolistically competitive firms, in which firms exit due to exogenous shocks, or the propagation of shocks through the network. Firms can replace suppliers they have lost due to exit subject to switching costs and search frictions. This enables us to study the impact of shocks on aggregate production in an adaptive network, and we show that depending on the nature of the shocks, adaptivity can make the network more or less stable.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 240

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Network Formation and Analysis: Theory ; Contracting Out; Joint Ventures; Technology Licensing ; Technological Change: Choices and Consequences; Diffusion Processes
• Thema: Production networks ; shocks ; supply chains ; resilience ; aggregate fluctuations

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): König, Michael D.
• Ereignis: Veröffentlichung
• (wer): University of Zurich, Department of Economics
• (wo): Zurich
• (wann): 2016

Weitere Informationen

• DOI: doi:10.5167/uzh-129005
• Handle: http://hdl.handle.net/10419/162443
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ