On the emergence of scale-free production networks

Abstract : Building upon the standard model of monopolistic competition on the market for intermediary goods, we propose a simple dynamical model of the formation of production networks. The model subsumes the standard general equilibrium approach and robustly reproduces key stylized facts of firms' demographics. Firms' growth rates are negatively correlated with size and follow a core double-exponential distribution followed by fat tails. Firms' size and production network are power-law distributed. These properties emerge because continuous inflow of new firms shifts away the model from a steady state to a disequilibrium regime in which firms get scaled according to their resistance to competitive forces.
Complete list of metadatas

Cited literature [31 references]  Display  Hide  Download

https://halshs.archives-ouvertes.fr/halshs-01179134
Contributor : Lucie Label <>
Submitted on : Tuesday, July 21, 2015 - 4:52:57 PM
Last modification on : Thursday, April 25, 2019 - 11:02:30 AM
Long-term archiving on : Thursday, October 22, 2015 - 11:03:11 AM

File

15060.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : halshs-01179134, version 1

Citation

Stanislao Gualdi, Antoine Mandel. On the emergence of scale-free production networks. 2015. ⟨halshs-01179134⟩

Share

Metrics

Record views

360

Files downloads

570