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Analyses of Aggregate Fluctuations of Firm Network Based on the Self-Organized Criticality Model

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  • Hiroyasu Inoue

Abstract

This study examine the difference in the size of avalanches among industries triggered by demand shocks, which can be rephrased by control of the economy or fiscal policy, and by using the production-inventory model and observed data. We obtain the following results. (1) The size of avalanches follows power law. (2) The mean sizes of avalanches for industries are diverse but their standard deviations highly overlap. (3) We compare the simulation with an input-output table and with the actual policies. They are compatible.

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  • Hiroyasu Inoue, 2015. "Analyses of Aggregate Fluctuations of Firm Network Based on the Self-Organized Criticality Model," Papers 1512.05066, arXiv.org, revised Apr 2016.
    • Handle: RePEc:arx:papers:1512.05066
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    Cited by:

    1. Inoue, Hiroyasu & Todo, Yasuyuki, 2017. "Firm-level simulation of supply chain disruption triggered by actual and predicted earthquakes," MPRA Paper 82920, University Library of Munich, Germany, revised 22 Feb 2017.
    2. Hiroyasu Inoue & Yasuyuki Todo, 2019. "Propagation of negative shocks across nation-wide firm networks," PLOS ONE, Public Library of Science, vol. 14(3), pages 1-17, March.

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