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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 …
Persistent link: https://www.econbiz.de/10014372496
This paper reviews some of the literature on the macroeconomic effects of oil price shocks with a particular focus on possible nonlinearities in the relation and recent new results obtained by Kilian and Vigfusson (2009)
Persistent link: https://www.econbiz.de/10012462470
This paper studies the causal mechanisms behind persistent poverty. Using original data on Boran pastoralists of southern Ethiopia, we find that heterogeneous and nonlinear wealth dynamics arise purely in adverse states of nature. In favorable states, expected herd grow is quasi-linear and...
Persistent link: https://www.econbiz.de/10012456054
) model as a flexible representation of stochastic dynamics. The TQAR model can identify zones of stability/instability and …
Persistent link: https://www.econbiz.de/10012456056
This paper compares different solution methods for computing the equilibrium of dynamic stochastic general equilibrium (DSGE) models with rare disasters along the line of those proposed by Rietz (1988), Barro (2006}, Gabaix (2012), and Gourio (2012). DSGE models with rare disasters require...
Persistent link: https://www.econbiz.de/10012456676
Macroeconomic dynamics are shaped by how individual incentives to spend and accumulate interact with the decisions of others. The goal of this paper is to identify--within a simple large-game-theoretic structure--which types of agent interactions favor which types of dynamic equilibrium...
Persistent link: https://www.econbiz.de/10014635624
, summary network parameters (e.g., the degree distribution or transitivity index); and (iii) empirical models of strategic … network formation admitting interdependencies in preferences. Current research challenges and open questions are also …
Persistent link: https://www.econbiz.de/10012480521
This paper presents and structurally estimates a model of endogenous network formation and legislative activity of … of Congress as exogenously given and instead embed it in a model of endogenous network formation useful for developing …
Persistent link: https://www.econbiz.de/10012455924
The adoption and diffusion of inputs in the production network is at the heart of technological progress. What … from a network perspective, starting from a stylized model of network formation. Producers direct their search for new … inputs along vertical linkages, screening the network neighborhood of existing suppliers to identify potentially useful …
Persistent link: https://www.econbiz.de/10012458639
We show that supply networks are inefficiently, and insufficiently, resilient. Upstream firms can expand their production capacity to hedge against supply and demand shocks. But the social benefits of such investments are not internalized due to market power and market incompleteness. Upstream...
Persistent link: https://www.econbiz.de/10014512075