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Basile Grassi, Julien Sauvagnat, Production networks and economic policy, Oxford Review of Economic Policy, Volume 35, Issue 4, Winter 2019, Pages 638–677, https://doi.org/10.1093/oxrep/grz021
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Abstract
In this paper, we show how to combine data on input–output tables and recent insights from the theory of production networks in order to inform policy. We first describe the information contained in input–output tables compiled by statistical agencies, and show how to derive relevant statistics of production networks. We then discuss the implications of production networks for policy intervention in a series of domains, such as fiscal policy, industrial policy, or, finance. Finally, we present a quantitative exercise applied to French data in order to illustrate that production networks shape the overall impact of competition policy on the economy.