INVESTIGADORES
LARROSA Juan Manuel Ceferino
capítulos de libros
Título:
Solow Growth Model with Network Production Functions: Theoretical and Empirical Explorations
Autor/es:
LARROSA, JUAN M.C.; TEDESCO, LORENA; BERMÙDEZ, CECILIA
Libro:
Progress in Economics Research
Editorial:
Nova Science Publishers
Referencias:
Lugar: New York; Año: 2017; p. 7 - 56
Resumen:
Production networks represent a more complex and realistic representation of the modern interconnected world. Suppliers and producers are intimate and intrinsically related in the process of converting raw goods into final products. However, primitive models of aggregate economic representation mostly did not embark in the complexity of network modeling. We work with a Solow growth model by adding different topologies of production networks where each sector of the economy has its own production functions with idiosyncratic shocks of technological progress. We then compare results in terms of rate of growth and final forms of aggregate technological progress. We find that sectorial idiosyncratic shocks add complexity in the level of aggregate technological progress in a way not previously observed. Then, we explore empirically the relationship between economic growth and structural metrics of real networks of production and find that the presence of longer paths of intersectorial relationships, network density, and specialized providers are positively associated with economic growth. These findings shed light on how highly interconnected economics with efficient sectors are related with larger gains in the long run.