Template-Type: ReDIF-Paper 1.0
Title: Revealing production networks from firm growth dynamics
Abstract: We study the correlation structure of firm growth rates. We show that most firms are correlated because of their exposure to a common factor but that firms linked through the supply chain exhibit a stronger correlation on average than firms that are not. Removing this common factor significantly reduces the average correlation between two firms with no relationship in the supply chain while maintaining a significant correlation between two firms that are linked. We then demonstrate how this observation can be used to reconstruct the topology of a supply chain network using Gaussian Markov Models.
Author-Name: Mungo, Luca
Author-Name: Moran, José
File-URL: https://oms-inet.files.svdcdn.com/production/files/reconstruction-v2.pdf
File-Format: Application/pdf
File-Function: 
Length: 21 pages
Creation-Date: 2023-02
Handle: RePEc:amz:wpaper:2023-02