Cascading Failures in Production Networks
研究投入产出网络与不完全竞争如何放大冲击并引发企业进入退出的级联效应，发现销售额不能衡量产业系统重要性，校准显示产出波动是完美竞争模型的三倍。
This paper analyzes a general equilibrium economy featuring input‐output connections, imperfect competition, and external economies of scale owing to entry and exit. The interaction of input‐output networks with industry‐level market structure affects the amplification of shocks and the pattern of diffusion in the model, generating cascades of firm entry and exit across the economy. In this model, sales provide a poor measure of the systemic importance of industries. Unlike the relevant notions of centrality in competitive constant‐returns‐to‐scale models, systemic importance depends on the industry's role as both a supplier and a consumer of inputs, as well as the market structure of industries. A basic calibration of the model suggests that aggregate output is three times more volatile in response to labor productivity shocks when compared to a perfectly competitive model.