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Evolutionary and Institutional Economics Review

, Volume 13, Issue 2, pp 383–396 | Cite as

Analyses of aggregate fluctuations of firm production network based on the self-organized criticality model

  • Hiroyasu Inoue
Article
  • 57 Downloads

Abstract

This study examines how consecutive productions in firms occur when triggered by demand shocks, which can be rephrased by control of the economy or fiscal policy. We use the production-inventory model and observed data that exhaustively include a production network of Japanese firms. We obtain the following results. (1) The size of consecutive productions follows a power law. (2) The mean sizes of consecutive productions for industries are diverse; however, their standard deviations are sufficiently large that the difference in the mean become less important. (3) We compare the simulation with an input–output table and with the actual policies; they are compatible.

Keywords

Aggregate fluctuation Demand Network Firm Production Inventory 

JEL Classification

D22 H32 E32 

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Copyright information

© Japan Association for Evolutionary Economics 2016

Authors and Affiliations

  1. 1.Graduate School of Simulation StudiesUniversity of HyogoKobeJapan

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