Seminario: "Production Network Density and Aggregate Volatility"

Presenta: Jorge Miranda (Queensland) Lugar y hora: Miércoles 19 de Julio de 2017, 13:00 hrs. Sala P 301, Edificio Placa (Diagonal Paraguay 257)
I show that the number of positive shares in the input-output (production network density) matters for volatility. Service oriented economies with denser connections display lower volatility, while denser manufacturing oriented economies display higher volatility. I build a multisector model with non-unitary elasticity of substitution between labor and intermediates and show that with an elasticity above one, as in service sectors, a higher network density diversifies shocks, while with an elasticity below one, as in manufacturing sectors, a higher density amplifies shocks. Calibrating the model for the countries in the sample yields a density-volatility correlation similar to the data.

Datos del Evento

Fecha de inicio:
19 de Julio, 2017 | 13:00 hrs.

Fecha de término
19 de Julio, 2017 | 14:00 hrs.