Caliendo, L., Parro, F. and Tsyvinski A.
Distortions and the structure of the world economy - American Economic Journal: Macroeconomics - 14(4), Oct, 2022: p.274-308
We model the world economy as one system of endogenous input-output relationships subject to frictions and study how the world's input-output structure and world's GDP change due to changes in frictions. We derive a sufficient statistic to identify frictions from the observed world input-output matrix, which we fully match for the year 2011. We show how changes in internal frictions impact the whole structure of the world's economy and that they have a much larger effect on world's GDP than external frictions. We also use our approach to study the role of internal frictions during the Great Recession of 2007–2009. – Reproduced
World economy, Great Recession, World's GDP
Distortions and the structure of the world economy - American Economic Journal: Macroeconomics - 14(4), Oct, 2022: p.274-308
We model the world economy as one system of endogenous input-output relationships subject to frictions and study how the world's input-output structure and world's GDP change due to changes in frictions. We derive a sufficient statistic to identify frictions from the observed world input-output matrix, which we fully match for the year 2011. We show how changes in internal frictions impact the whole structure of the world's economy and that they have a much larger effect on world's GDP than external frictions. We also use our approach to study the role of internal frictions during the Great Recession of 2007–2009. – Reproduced
World economy, Great Recession, World's GDP