Grossman, Gene M.; Helpman, Elhanan; Sabal, Alejandro - National Bureau of Economic Research - 2023
other firms in the production network. We compare the equilibrium and optimal allocations in a general equilibrium model … policies that implement the first-best allocation, allowing for subsidies to input purchases, network formation, and … subsidies to transactions are infeasible, the second-best subsidies for resilience and network formation depend on production …