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This chapter examines how economic shocks and policy changes affect the broader economy through the production networks. We extend the standard DSGE model to include multiple sectors, analyzing how different stages of production interact and how the structures of the supply chain influence the economic results. Our analysis reveals how initial shocks to one sector can cascade through the production network, creating different patterns of economic response.

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Production Networks and Carbon Emissions: DSGE and CGE Frameworks

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  • 发表日期：

    2025年

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  • Ying Tung Chan,
  • Dayong Zhang

摘要

This chapter examines how economic shocks and policy changes affect the broader economy through the production networks. We extend the standard DSGE model to include multiple sectors, analyzing how different stages of production interact and how the structures of the supply chain influence the economic results. Our analysis reveals how initial shocks to one sector can cascade through the production network, creating different patterns of economic response.