Author : Chunyang Fu
Release : 2022
Genre :
Kind : eBook
Book Rating : /5 ( reviews)
Book Synopsis Dynamic Production Networks with Cascading Failures by : Chunyang Fu
Download or read book Dynamic Production Networks with Cascading Failures written by Chunyang Fu. This book was released on 2022. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes a dynamic general equilibrium model featuring input-output linkages, imperfect competition, and external economies of scale with firm entry and exit. We analytically show the interaction between input-output linkages and firm entry and exit augments the amplification of productivity shocks through the elastic labor supply channel additionally. A basic calibration of the dynamic model with cap- ital accumulation shows that output is 30% more volatile in the dynamic production network with cascading failures than without cascading failures.