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The (Dis-)equalizing effects of production networks

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  • Ipsen, Leonhard
  • Schulz-Gebhard, Jan

Abstract

We suggest and empirically substantiate that the global production network constitutes an important variable for inflation inequality, as it modulates the impact of cost-push shocks on households. For most price shocks, the production network reduces inflation inequality, however, at the expense of lower-income households. Introducing a synthetic Consumer Price Index indicates lower-income households to be at the losing end of the overall effect of supply-side price shocks.

Suggested Citation

  • Ipsen, Leonhard & Schulz-Gebhard, Jan, 2024. "The (Dis-)equalizing effects of production networks," BERG Working Paper Series 195, Bamberg University, Bamberg Economic Research Group.
    • Handle: RePEc:zbw:bamber:300671
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    References listed on IDEAS

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    1. Isabella M Weber & Jesus Lara Jauregui & Lucas Teixeira & Luiza Nassif Pires, 2024. "Inflation in times of overlapping emergencies: Systemically significant prices from an input–output perspective," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 33(2), pages 297-341.
    2. Abbas Valadkhani & William F. Mitchell, 2002. "Assessing the Impact of Changes in Petroleum Prices on Inflation and Household Expenditures in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(2), pages 122-132, June.
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