scholarly journals Distortions in Production Networks*

2020 ◽  
Vol 135 (4) ◽  
pp. 2187-2253 ◽  
Author(s):  
Saki Bigio ◽  
Jennifer La’O
Keyword(s):  
Order Effects ◽  
Production Structure ◽  
Aggregate Level ◽  
Production Networks ◽  
Input Output ◽  
Sufficient Statistic ◽  
First Order ◽  
Output Structure ◽  
Labor Wedge ◽  
Aggregate Effects

Abstract How does an economy’s production structure determine its macroeconomic response to sectoral distortions? We study a static, multisector framework in which production is organized in an input-output network and production decisions are distorted. Sectoral distortions manifest at the aggregate level via two channels: total factor productivity (TFP) and the labor wedge. We show that near efficiency, distortions have zero first-order effects on TFP and nonzero first-order effects on the labor wedge, and that a sufficient statistic for the latter are the Domar weights. We thereby provide a Hulten-like theorem for the aggregate effects of sectoral distortions. A quantitative application of the model to the 2008–09 financial crisis suggests that the U.S. input-output structure amplified financial distortions by roughly a factor of two during the crisis.

Industrial Policies in Production Networks*

2019 ◽  
Vol 134 (4) ◽  
pp. 1883-1948 ◽  
Author(s):  
Ernest Liu
Keyword(s):  
Developing Economies ◽  
Production Network ◽  
Production Networks ◽  
Economic Sectors ◽  
Sufficient Statistic ◽  
Industrial Policies ◽  
First Order ◽  
The Social ◽  
Aggregate Effects ◽  
Size Distortions

Abstract Many developing economies adopt industrial policies favoring selected sectors. Is there an economic logic to this type of intervention? I analyze industrial policy when economic sectors form a production network via input-output linkages. Market imperfections generate distortionary effects that compound through backward demand linkages, causing upstream sectors to become the sink for imperfections and have the greatest size distortions. My key finding is that the distortion in sectoral size is a sufficient statistic for the social value of promoting that sector; thus, there is an incentive for a well-meaning government to subsidize upstream sectors. Furthermore, sectoral interventions’ aggregate effects can be simply summarized, to first order, by the cross-sector covariance between my sufficient statistic and subsidy spending. My sufficient statistic predicts sectoral policies in South Korea in the 1970s and modern-day China, suggesting that sectoral interventions might have generated positive aggregate effects in these economies.

Planning with Semi-input-output Method with Empirical Application to Nigeria. By Arie Kuyvenhoven. Leiden: Martinus Nijhoff Social Sciences Division. 1978. xi + 266 pp.

1980 ◽  
Vol 19 (3) ◽  
pp. 247-249
Author(s):  
A. R. Kemal
Keyword(s):  
Social Sciences ◽  
Developing Countries ◽  
Final Demand ◽  
The Other ◽  
Production Structure ◽  
Input Output ◽  
Output Analysis ◽  
Input Output Analysis ◽  
Comparative Cost ◽  
Planning Models

Input -output analysis is being widely used in developing countries for planning purposes. For a given level of final demand, input-output analysis allows us to project the required level of gross output to ensure consistency of plan. These projections are made on the assumption that the existing production structure is optimal and it implies that an increase in demand will be met through the expansion of domestic output even when it can be satisfied through an increase in imports. On the other hand, according to the semi-input-output method, we do not have to increase the output of international sectors in order to meet the increase in demand because the level and composition of these activities should be determined by comparative- cost considerations. These are the only national sectors in which output must increase in order to avoid shortage. The semi-input -output method has been such a useful and important contribution, yet, regrettably, its influence on the planning models had been rather limited.

scholarly journals Dissipation in the effective field theory for hydrodynamics: First-order effects

2013 ◽  
Vol 88 (10) ◽  
Author(s):  
Solomon Endlich ◽  
Alberto Nicolis ◽  
Rafael A. Porto ◽  
Junpu Wang
Keyword(s):  
Field Theory ◽  
Effective Field Theory ◽  
Effective Field ◽  
Order Effects ◽  
First Order

scholarly journals Reputations for Resolve and Higher-Order Beliefs in Crisis Bargaining

2021 ◽  
pp. 002200272199554
Author(s):  
Allan Dafoe ◽  
Remco Zwetsloot ◽  
Matthew Cebul
Keyword(s):  
Belief Change ◽  
Higher Order ◽  
Future Research ◽  
Order Effects ◽  
Survey Experiment ◽  
Experimental Setting ◽  
Crisis Bargaining ◽  
First Order ◽  
Qualitative Evidence ◽  
Higher Order Effects

Reputations for resolve are said to be one of the few things worth fighting for, yet they remain inadequately understood. Discussions of reputation focus almost exclusively on first-order belief change— A stands firm, B updates its beliefs about A’s resolve. Such first-order reputational effects are important, but they are not the whole story. Higher-order beliefs—what A believes about B’s beliefs, and so on—matter a great deal as well. When A comes to believe that B is more resolved, this may decrease A’s resolve, and this in turn may increase B’s resolve, and so on. In other words, resolve is interdependent. We offer a framework for estimating higher-order effects, and find evidence of such reasoning in a survey experiment on quasi-elites. Our findings indicate both that states and leaders can develop potent reputations for resolve, and that higher-order beliefs are often responsible for a large proportion of these effects (40 percent to 70 percent in our experimental setting). We conclude by complementing the survey with qualitative evidence and laying the groundwork for future research.

scholarly journals Statistical analysis of second order effects variation with the stories height of reinforced concrete buildings

2017 ◽  
Vol 10 (2) ◽  
pp. 333-357
Author(s):  
D.M. OLIVEIRA ◽  
N.A. SILVA ◽  
C.C. RIBEIRO ◽  
S.E.C. RIBEIRO
Keyword(s):  
Reinforced Concrete ◽  
Statistical Analysis ◽  
Second Order ◽  
Order Effects ◽  
Reinforced Concrete Buildings ◽  
First Order ◽  
Concrete Buildings ◽  
Ideal Situation ◽  
Second Order Effects ◽  
The Ideal

Abstract In this paper the simplified method to evaluate final efforts using γ z coefficient is studied considering the variation of the second order effects with the height of the buildings. With this purpose, several reinforced concrete buildings of medium height are analyzed in first and second order using ANSYS software. Initially, it was checked that the (z coefficient should be used as magnifier of first order moments to evaluate final second order moments. Therefore, the study is developed considering the relation (final second order moments/ first order moments), calculated for each story of the structures. This moments relation is called magnifier of first order moments, "γ", and, in the ideal situation, it must coincide with the γ z value. However, it is observed that the reason γ /γ z varies with the height of the buildings. Furthermore, using an statistical analysis, it was checked that γ /γ z relation is generally lower than 1.05 and varies significantly in accordance with the considered building and with the presence or not of symmetry in the structure.

scholarly journals Le tarif extérieur canadien et la protection de l’activité manufacturière québécoise : nouveaux résultats (1966-1977)

2009 ◽  
Vol 56 (1) ◽  
pp. 5-39 ◽  
Author(s):  
Vittorio Corbo ◽  
André Martens
Keyword(s):  
Substitution Effect ◽  
Input Output ◽  
Effective Protection ◽  
Intermediate Inputs ◽  
Output Structure ◽  
Protection Rate ◽  
Export Shares ◽  
The Impact

Abstract Using the 1966 and 1973 (74) Quebec input-output tables we try to identify the sources of variations in the effective protection rates of 169 manufacturing activities between these two periods, namely, changes in nominal tariffs, input-output structures and international export shares. Our results suggest that, between 1969 and 1974, there were a certain number of activities where entrepreneurs used relatively more of the intermediate inputs which had become cheaper (technical substitution effect). However, most of the changes in the effective protection rate values remain explained by changes in the external nominal tariff. The impact of changes in international export shares is itself negligible. Finally the study provides the effective protection rates of the 169 activities for 1977 (given the 1973-74) input-output structure.

The Politics of the Knowledge Economy and the Rise of Populism

2019 ◽  
pp. 216-255
Author(s):  
Torben Iversen ◽  
David Soskice
Keyword(s):  
Knowledge Economy ◽  
Second Order ◽  
Government Support ◽  
The Political ◽  
Order Effects ◽  
First Order ◽  
Policy Responses ◽  
The Poor ◽  
Political Conditions ◽  
Political Economic

This chapter considers the “second-order” effects of the transition to the knowledge economy. This means the set of preferences, beliefs, and party allegiances that are crystallizing as a consequence of the political-economic realities brought about by the knowledge economy. Chapter 3 considered “first-order” effects—immediate policy responses reflecting existing political coalitions—and showed that these responses were relatively limited and in most countries, failed to offer much compensation for those who lost out in the collapse of the Fordist economy. This chapter argues that this failure has created the political conditions for the rise of populism. Populism refers to a set of preferences and beliefs that rejects established parties and elites, that sees established politicians as gaming the system to their own advantage, and that at the same time sees the poor as undeserving of government support.

First Order Effects in the Michelson‐Morley Experiment

2002 ◽  
Vol 15 (4) ◽  
pp. 422-438 ◽  
Author(s):  
R. C. de Miranda Filho ◽  
N. P. Andion ◽  
N. C. Ada Costa
Keyword(s):  
Order Effects ◽  
First Order ◽  
Morley Experiment

scholarly journals Chemical industry and value-added trade – A comparative study on Hungary and Poland

2019 ◽  
Vol 69 (1) ◽  
pp. 81-99 ◽  
Author(s):  
Pawel Folfas ◽  
Beáta Udvari
Keyword(s):  
Economic Policy ◽  
World Economy ◽  
New Products ◽  
Value Added ◽  
Value Chains ◽  
Production Networks ◽  
Input Output ◽  
Global Production Networks ◽  
The World ◽  
Chemical Products

Nowadays, global production networks (GPN) and global value chains (GVC) play an important role in the world economy intensifying the trade and production networks and resulting in products having value-added in different countries. The analysis of how many intermediate products a country imports in order to produce a product and of how many products a country exports to another country in order to produce new products draws the attention to value-added trade. In the present study, we compare the Hungarian and Polish value-added trade of chemicals and chemical products. We use the OECD-WTO data of value-added trade, which is based on an input-output table. By calculating numerous indices, we reveal that the domestic value-added of chemicals and chemical products in the two countries was relatively low and should be increased by adequate economic policy.

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