Template-Type: ReDIF-Paper 1.0
Author-Name: Jakob Grazzini
Author-X-Name-First: Jakob 
Author-X-Name-Last: Grazzini
Author-Email: jacob.grazzini@unicatt.it
Author-Workplace-Name: Università Cattolica del Sacro Cuore
Author-Workplace-Name: Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore
Author-Name: Alessandro Spelta
Author-X-Name-First: Alessandro 
Author-X-Name-Last: Spelta
Author-Email: alessandro.spelta@unicatt.it
Author-Workplace-Name: Università Cattolica del Sacro Cuore
Author-Workplace-Name: Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore

Title: An empirical analysis of the global input-output network and its evolution 
Abstract: Data, without a model, are just numbers. The analysis of networks in economics should
take into account how economic agents react to exogenous shocks. In order to determine
the centrality of a node in the global input-output network, we analyze the network through
the lenses of an economic model calibrated on empirical data. We show that formalizing
the nodes as firms, and modeling the links as the result of firms' behavior (trade), is impor-
tant for the economic interpretation of the network topology. Moreover, using the calibrated
model, we define a fragility index that measures the ability of the system to absorb exogenous
shocks. We find that the fragility of the production network has increased from 1995 to 2011.
Length: 28
Creation-Date: 2015-10
File-URL: http://dipartimenti.unicatt.it/economia-finanza-def031.pdf
File-Format: Application/pdf
File-Function: First version, 2015
Number: def031
Classification-JEL: C67. 
Keywords: Input-output, Network, Fragility.
Handle: RePEc:ctc:serie1:def031