Introduction
Production networks live at the heart of modern economies and global value chains. Shocks such as demand shifts, technological change, and the emergence (death) of new (old) industries generate responses that propagate across their linkages. Most analytic tools analyse some of these shocks by considering production networks to be exogenous, while others that try to explain their formation have limited real-world applicability. We develop models of how such networks emerge from the learning process of firms under uncertainty; without having perfect knowledge of the nature of technology (also known as production functions). These models can be calibrated with publicly available input-output datasets and deployed with various types of production functions, facilitating the analysis of structural transformations such as drastic technological changes. The tools produced by this project can be used to support evidence-based policy making, for example, when formulating national industrial strategies or when considering supporting emergent industries.
Organisers
