Production Networks: A Primer

41 Pages Posted: 7 Jan 2019 Last revised: 11 Jan 2019

See all articles by Vasco M. Carvalho

Vasco M. Carvalho

Universitat Pompeu Fabra/CREI; Centre for Economic Policy Research (CEPR); University of Cambridge

Alireza Tahbaz-Salehi

Northwestern University - Kellogg School of Management

Multiple version iconThere are 2 versions of this paper

Date Written: December 2018


This article reviews the literature on production networks in macroeconomics. It presents the theoretical foundations for the role of input-output linkages as a shock propagation channel and as a mechanism for transforming microeconomic shocks into macroeconomic fluctuations. The article also provides a brief guide to the growing literature that explores these themes empirically and quantitatively.

Keywords: input-output linkages, networks, shock propagation

Suggested Citation

Carvalho, Vasco M. and Tahbaz-Salehi, Alireza, Production Networks: A Primer (December 2018). CEPR Discussion Paper No. DP13421. Available at SSRN:

Vasco M. Carvalho (Contact Author)

Universitat Pompeu Fabra/CREI ( email )

Ramon Trias Fargas, 25-27
Barcelona, 08005


Centre for Economic Policy Research (CEPR) ( email )

United Kingdom

University of Cambridge ( email )

Trinity Ln
Cambridge, CB2 1TN
United Kingdom

Alireza Tahbaz-Salehi

Northwestern University - Kellogg School of Management ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

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