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Faculty of Economics

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Carvalho, V. M. and Tahbaz-Salehi, A.

Production Networks: A Primer

Annual Review of Economics

Vol. 11 pp. 635-663 (2019)

Abstract: This article reviews the literature on production networks in macroeconomics. It presents the theoretical foundations for the role of input–output linkages as a shock propagation channel and as a mechanism for transforming microeconomic shocks into macroeconomic fluctuations. The article also provides a brief guide to the growing literature that explores these themes empirically and quantitatively.

Keywords: networks, input–output linkages, shock propagation, aggregate fluctuations

JEL Codes: D57, D85, E32, L14

Author links: Vasco Carvalho  

Publisher's Link: https://doi.org/10.1146/annurev-economics-080218-030212



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