Abstract This paper studies an economy in which the network structure of production is endogenously determined by the firms' extensive margin of operation. In the model, a finite number of firms are connected through input-output linkages and must pay a fixed cost to produce. When economic...

This paper investigates the role of heterogeneous elasticities of substitution in the US production network in the transmission of supply shocks. We develop and estimate a multi-industry general equilibrium model featuring heterogeneous elasticities of substitution in input demands. Using...

In this paper, I study the effects of the construction of high-speed railway (HSR) on the spatial distribution of firms in China, from the perspectives of spatial production networks. Exploiting exogenous variations of the slope of the terrain and the distance to the historical sites, I document...

The exploration of the structural features and sectoral interdependences of and in an economy is fundamental for the understanding of its modes of functioning and of its transformations over time. Input-output analysis is largely used to fulfill this objective. Furthermore, information provided...

The issue of the impact of trade on specialisation structures and the effects of trade liberalisation on employment and labour markets has been intensively discussed in the recent literature on trade liberalisation and globalisation. In Europe this debate has gained new momentum in the...

While the EU-wide carbon price has already been adopted for the buildings and transport sectors with ETS°2, detailed analyses of the macroeconomic and distributional effects (both within and between countries) are scarce. We use the macroeconomic model ADAGIO to estimate the effects of EU-wide...

We assess the sectoral impact of the implementation of a "green" employer of last resort (ELR) program in the US, based on an environmental modification of an extended Kurz's (1985) multiplier framework and data from OECD Input-Output tables. We use these multipliers to estimate the impact of an...

Do input-output linkages of intermediate products affect the spread of sectoral shocks at the aggregate level in Lithuania, a small and open economy? What role does openness play in the empirical exercise? We answer these questions by: (i) constructing the Lithuanian input-output transactions...