IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2302.09906.html
   My bibliography  Save this paper

Revealing production networks from firm growth dynamics

Author

Listed:
  • Luca Mungo
  • Jos'e Moran

Abstract

We study the correlation structure of firm growth rates. We show that most firms are correlated because of their exposure to a common factor but that firms linked through the supply chain exhibit a stronger correlation on average than firms that are not. Removing this common factor significantly reduces the average correlation between two firms with no relationship in the supply chain while maintaining a significant correlation between two firms that are linked. We then investigate if this observation can be used to reconstruct the topology of a supply chain network using Gaussian Markov Models.

Suggested Citation

  • Luca Mungo & Jos'e Moran, 2023. "Revealing production networks from firm growth dynamics," Papers 2302.09906, arXiv.org, revised Jul 2023.
  • Handle: RePEc:arx:papers:2302.09906
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2302.09906
    File Function: Latest version
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jos'e Moran & Massimo Riccaboni, 2024. "Compositional Growth Models," Papers 2404.07935, arXiv.org.
    2. Christian Diem & Andr'as Borsos & Tobias Reisch & J'anos Kert'esz & Stefan Thurner, 2023. "Estimating the loss of economic predictability from aggregating firm-level production networks," Papers 2302.11451, arXiv.org.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2302.09906. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.