All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

 
Ben Shepherd
 
''International input-output linkages and exogenous shock transmission: a simple model''
( 2018, Vol. 38 No.4 )
 
 
This paper develops a simple model of shock transmission through an input-output network. The impact of a negative shock on distant nodes is related to the eigenvector centrality scores of those nodes. This finding is independent of production technology, and flows only from the structure of the network. Econometric models using data from the 2008-2009 Financial Crisis lend strong support to the model: centrality has a significant, negative impact on output changes following the crisis. Network structure, covering interlinkages among all sectors of the economy, not just the locus of a shock, therefore has a significant impact on propagation.
 
 
Keywords: Networks; Centrality; Global Financial Crisis; Input-Output.
JEL: F1 - Trade: General
C6 - Mathematical Methods and Programming: General
 
Manuscript Received : May 04 2018 Manuscript Accepted : Dec 10 2018

  This abstract has been downloaded 1065 times                The Full PDF of this paper has been downloaded 164957 times