Input Specificity and the Propagation of Idiosyncratic Shocks in Production Networks
Bibliographic Data
| ID | 23364889 |
|---|---|
| Authors | Jean-Noël Barrot (Boston University), Julien Sauvagnat (0000-0001-7930-8558, Boston University) |
| Year | 2016 |
| Volume | 131 |
| Issue | 3 |
| Pages | 1543-1592 |
| Publication date | 2016-08-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Quarterly Journal of Economics (JOURNAL) |
| Journal identifiers | ISSN: 0033-5533 • E-ISSN: 1531-4650 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1093/qje/qjw018 |
| OpenAlex | W2260725321 |
| Language | EN |
| Citations received | 83 |
| References cited | 46 |
This article examines whether firm-level idiosyncratic shocks propagate in production networks. We identify idiosyncratic shocks with the occurrence of natural disasters. We find that affected suppliers impose substantial output losses on their customers, especially when they produce specific inputs. These output losses translate into significant market value losses, and they spill over to other suppliers. Our point estimates are economically large, suggesting that input specificity is an important determinant of the propagation of idiosyncratic shocks in the economy.
Business · Econometrics · Economics · Geography · Microeconomics · Monetary economics · Natural disaster · Point (geometry) · Production (economics) · Value (mathematics) · Agricultural risk and resilience · Banking stability, regulation, efficiency · Computer Science · Insurance and Financial Risk Management · Mathematics
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| Unique citing works | 83 |
|---|---|
| Citations per year | 8,3 |
| Citation span | 2016 - 2026 (11) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 79 |