Propagation of Shocks in An Input-Output Economy: Evidence from Disaggregated Prices

主讲人: Shaowen Luo（Virginia Tech）

主持人：余昌华

时间：4月4日（周二）上午9:00-10:30

地点：承泽园246教室

Zoom会议号：926 3889 7210

密码：908060

摘要：This paper empirically evaluates the predictions for the cross-sectional price change distribution made by input-output models with sticky prices. Using disaggregated industry-level data, we find that the response of price to shocks is consistent with the price sensitivities predicted by the input-output model. Moreover, moments of sectoral price change distribution vary over time in response to the evolution of the network structure. Finally, through a quantitative analysis, we disentangle sectoral demand and supply shocks during the pandemic period. Running counterfactual analyses, we find that sectoral supply shocks, aggregate demand shock and the propagation of shocks through the production network contributed significantly to the inflation surge in 2021-2022.

主讲人介绍：Shaowen Luo has been named as an assistant professor in the Department of Economics, part of the College of Science. She earned her bachelor’s and master’s degrees in economics and finance from the University of Hong Kong in 2009 and 2010, respectively, and a doctorate in economics from Columbia University in 2016. A macroeconomist, her research focuses on monetary policy and economics of networks. Most recently she has been studying the transmission of shocks in production/financial networks, and the implications of price rigidities for monetary non-neutrality.