Endogenous production networks and non-linear monetary transmission
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- dc.contributor.author Ghassibe, Mishel
- dc.date.accessioned 2024-05-30T12:39:30Z
- dc.date.available 2024-05-30T12:39:30Z
- dc.date.issued 2023-12
- dc.description.abstract I develop a tractable dynamic sticky-price model, where input-output linkages are formed endogenously. The model delivers cyclical properties of networks that are consistent with those I estimate using sectoral and firm-level data, conditional on identified real and nominal shocks. A novel source of state dependence in nominal rigidities arises: the strength of complementarities in price setting and monetary non-neutrality increase in the number of suppliers optimally chosen by firms. As a result, the model simultaneously rationalizes the following observed non-linearities in monetary transmission. First, there is cycle dependence: the magnitude of real GDP’s response to a monetary shock is procyclical. Second, there is path dependence: non-neutrality of real GDP is higher following previous periods of loose monetary policy. Third, there is size dependence: larger monetary contractions shrink the network and generate a less than proportional decrease in GDP relative to smaller contractions.ca
- dc.format.mimetype application/pdf*
- dc.identifier.uri http://hdl.handle.net/10230/60292
- dc.language eng
- dc.language.iso engca
- dc.rights.accessRights info:eu-repo/semantics/openAccessca
- dc.subject.keyword Monetary transmissionen
- dc.subject.keyword State dependenceen
- dc.subject.keyword Endogenous production networksen
- dc.title Endogenous production networks and non-linear monetary transmissionca
- dc.type info:eu-repo/semantics/workingPaperca