Propagation of shocks in an input-output economy: Evidence from disaggregated prices

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dc.contributor.authorLuo, Shaowenen
dc.contributor.authorVillar, Daviden
dc.date.accessioned2024-02-19T17:57:49Zen
dc.date.available2024-02-19T17:57:49Zen
dc.date.issued2023-07-01en
dc.description.abstractUsing disaggregated industry-level data, this paper empirically evaluates predictions for the cross-sectional price change distribution made by input-output models with sticky prices. The response of prices to shocks is found to be consistent with the price sensitivities predicted by the input-output model. Moreover, moments of the sectoral price change distribution vary over time in response to the evolution of the network structure. Finally, through a quantitative analysis, demand and supply shocks are disentangled during the pandemic period. Counterfactual analyses show that sectoral supply shocks, aggregate demand shocks and the production network structure contributed significantly to the inflation surge in 2021–2022.en
dc.description.versionPublished versionen
dc.format.extentPages 26-46en
dc.format.mimetypeapplication/pdfen
dc.identifier.doihttps://doi.org/10.1016/j.jmoneco.2023.05.004en
dc.identifier.issn0304-3932en
dc.identifier.orcidLuo, Shaowen [0000-0002-9906-8114]en
dc.identifier.urihttps://hdl.handle.net/10919/118029en
dc.identifier.volume137en
dc.language.isoenen
dc.publisherElsevieren
dc.rightsPublic Domain (U.S.)en
dc.rights.urihttp://creativecommons.org/publicdomain/mark/1.0/en
dc.subjectNominal rigidityen
dc.subjectProduction networken
dc.subjectPropagation of shocksen
dc.subjectInflationen
dc.subjectPandemicen
dc.titlePropagation of shocks in an input-output economy: Evidence from disaggregated pricesen
dc.title.serialJournal of Monetary Economicsen
dc.typeArticle - Refereeden
dc.type.dcmitypeTexten
dc.type.otherJournal Articleen
pubs.organisational-group/Virginia Techen
pubs.organisational-group/Virginia Tech/Scienceen
pubs.organisational-group/Virginia Tech/Science/Economicsen
pubs.organisational-group/Virginia Tech/All T&R Facultyen
pubs.organisational-group/Virginia Tech/Science/COS T&R Facultyen

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