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From production networks to geographical economics

[journal article]

Weisbuch, Gérard; Battiston, Stefano

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Please use the following Persistent Identifier (PID) to cite this document:http://nbn-resolving.de/urn:nbn:de:0168-ssoar-199526

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Abstract Although standard economics textbooks are seldom interested in production networks, modern economies are more and more based upon supplier/ customer interactions. One can consider entire sectors of the economy as generalised supply chains. We will take this view in the present paper and study under which conditions local failures to produce or simply to deliver can result in avalanches of shortage and bankruptcies and in localisation of the economic activity. We will show that a large class of models exhibit scale free distributions of production and wealth among firms and that regions of high production are localised.
Classification Political Economy
Free Keywords Networks; Supply; Credit chains; Geographical economics
Document language English
Publication Year 2007
Page/Pages p. 448-469
Journal Journal of Economic Behavior & Organization, 64 (2007) 3-4
DOI http://dx.doi.org/10.1016/j.jebo.2006.06.018
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)