COMPUTATIONAL SOCIAL SCIENCE – Endogenous Growth in Production Networks – Antoine Mandel

When:
March 24, 2017 @ 3:00 pm – 4:30 pm
2017-03-24T15:00:00-04:00
2017-03-24T16:30:00-04:00
Where:
Center for Social Complexity Suite 3rd Floor, Research Hall, Fairfax Campus
Cost:
Free
Contact:
Karen Underwood
7039939298

COMPUTATIONAL SOCIAL SCIENCE FRIDAY SEMINAR

Antoine Mandel, Associate Professor
CES-Centre d’Economie de la Sorbonne

Endogenous Growth in Production Networks

Friday, March 24,2017, 3:00-4:30 p.m.
Center for Social Complexity Suite
Research Hall, 3rd Floor

We investigate the interplay between technological change and macroeconomic dynamics in an agent-based model of the formation of production networks. On the one hand, production networks form the structure that determines economic dynamics in the short run. On the other hand, their evolution reflects the long-term impacts of competition and innovation on the economy. We account for process innovation via increasing variety in the input mix and hence increasing connectivity in the net- work. In turn, product innovation induces a direct growth of the firm’s productivity and the potential destruction of links. The interplay between both processes generate complex technological dynamics in which phases of process and product innovation successively dominate. The model reproduces a wealth of stylized facts about industrial dynamics and technological progress, in particular the persistence of heterogeneity among firms and Wright’s law for the growth of productivity within a technological paradigm. We illustrate the potential of the model for the analysis of industrial policy via a preliminary set of policy experiments in which we investigate the impact on innovators’ success of feed-in tariffs and of priority market access.