Arbeitspapier
Econometric Analysis of Production Networks with Dominant Units
This paper builds on the work of Acemoglu et al. (2012) and considers a production network with unobserved common technological factor and establishes general conditions under which the network structure contributes to aggregate fluctuations. It introduces the notions of strongly and weakly dominant units, and shows that at most a finite number of units in the network can be strongly dominant, while the number of weakly dominant units can rise with N (the cross section dimension). This paper further establishes the equivalence between the highest degree of dominance in a network and the inverse of the shape parameter of the power law. A new extremum estimator for the degree of pervasiveness of individual units in the network is proposed, and is shown to be robust to the choice of the underlying distribution. Using Monte Carlo techniques, the proposed estimator is shown to have satisfactory small sample properties. Empirical applications to US input-output tables suggest the presence of production sectors with a high degree of pervasiveness, but their effects are not sufficiently pervasive to be considered as strongly dominant.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 6141
- Klassifikation
-
Wirtschaft
Hypothesis Testing: General
Estimation: General
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Input-Output Models
Business Fluctuations; Cycles
- Thema
-
aggregate fluctuations
strongly and weakly dominant units
spatial models
outdegrees
degree of pervasiveness
power law
input-output tables
US economy
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Pesaran, M. Hashem
Yang, Cynthia Fan
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2016
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Pesaran, M. Hashem
- Yang, Cynthia Fan
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2016
Ähnliche Objekte (12)
Dominant numbers and units of the Great Pyramid
Estimation and inference in spatial models with dominant units
Econometric analysis of high dimensional VARs featuring a dominant unit
Econometric analysis of high dimensional VARs featuring a dominant unit
Econometric information recovery in behavioral networks
Service-dominant networks : an evolution from the service-dominant logic perspective
International networks of knowledge flows: an econometric analysis
Sparse Production Networks
Dominante
An Econometric Analysis of a Production Function for New Zealand
Econometric analysis of quantile regression models and networks : With empirical applications
Monitoring pumping units by convolutional neural networks for operating point estimations
Dominant numbers and units of the Great Pyramid
Estimation and inference in spatial models with dominant units
Econometric analysis of high dimensional VARs featuring a dominant unit
Econometric analysis of high dimensional VARs featuring a dominant unit
Econometric information recovery in behavioral networks
Service-dominant networks : an evolution from the service-dominant logic perspective
International networks of knowledge flows: an econometric analysis
Sparse Production Networks
Dominante
An Econometric Analysis of a Production Function for New Zealand
Econometric analysis of quantile regression models and networks : With empirical applications
Monitoring pumping units by convolutional neural networks for operating point estimations
Dominant numbers and units of the Great Pyramid
Estimation and inference in spatial models with dominant units
Econometric analysis of high dimensional VARs featuring a dominant unit
Econometric analysis of high dimensional VARs featuring a dominant unit
Econometric information recovery in behavioral networks
Service-dominant networks : an evolution from the service-dominant logic perspective
International networks of knowledge flows: an econometric analysis
Sparse Production Networks
Dominante
An Econometric Analysis of a Production Function for New Zealand
Econometric analysis of quantile regression models and networks : With empirical applications