Kopytov, Alexandr; Mishra, Bineet; Nimark, Kristoffer; … - 2022
take steps to reduce their reliance on volatile suppliers. We construct a model of endogenous network formation to … investigate how these decisions affect the structure of the production network and the level and volatility of macroeconomic … might sell at higher prices. The resulting reorganization of the network leads to less macroeconomic volatility, but at the …