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Structure and Change in Production Networks: Evidence from US Firm level data

Author

Listed:
  • Michael Gofman

    (University Wisconsin-Madison)

  • Vasco Carvalho

    (CREI and Universitad Pompeu Fabra)

Abstract

An emerging literature in macroeconomics has stressed how production networks facilitate the propagation of shocks and affect the aggregate performance of the economy (Carvalho 2010, Acemoglu et. al. 2011, Oberfield 2011). Yet there is no empirical evidence about the structure of large production networks at the firm level. In this paper we use a novel, proprietary, firm-level database to measure the structure and evolution of production networks in the US economy from 2004 until 2011. We provide new stylized facts about network formation and the stability of supplier-customer relationships. Further, we document how these patterns correlate with observable firm characteristics. We conclude by discussing how these novel stylized facts can inform further theoretical work in this area.

Suggested Citation

  • Michael Gofman & Vasco Carvalho, 2012. "Structure and Change in Production Networks: Evidence from US Firm level data," 2012 Meeting Papers 938, Society for Economic Dynamics.
    • Handle: RePEc:red:sed012:938
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