TY - GEN AB - Recently, a large literature has been developed from the production network models, to be applied in a diversity of fields as financial contagion, trade comovements or the aggregation of micro shocks. Thus, one theoretical implication introduced by Acemoglu et al. (2015), argue that demand-side shocks (i.e. government spending) spread through the production networks following upstream propagation with greater intensity downstream. This paper empirically evaluates the international transmission of government purchase shocks through a production network. Using industry-level data about international input-output linkages, I extend the empirical approach in Acemoglu et al. (2015) to examine employment responses to government purchases. I find that fiscal shocks have a significant and positive impact on the employment, through the international production network. AU - Quispe, Isai CY - Geneva DA - 2017 DA - 2017 DO - 10.71609/iheid-9zve-0336 DO - doi ID - 295954 L1 - https://repository.graduateinstitute.ch/record/295954/files/heidwp20-2017_2.pdf L2 - https://repository.graduateinstitute.ch/record/295954/files/heidwp20-2017_2.pdf L4 - https://repository.graduateinstitute.ch/record/295954/files/heidwp20-2017_2.pdf LK - https://repository.graduateinstitute.ch/record/295954/files/heidwp20-2017_2.pdf N2 - Recently, a large literature has been developed from the production network models, to be applied in a diversity of fields as financial contagion, trade comovements or the aggregation of micro shocks. Thus, one theoretical implication introduced by Acemoglu et al. (2015), argue that demand-side shocks (i.e. government spending) spread through the production networks following upstream propagation with greater intensity downstream. This paper empirically evaluates the international transmission of government purchase shocks through a production network. Using industry-level data about international input-output linkages, I extend the empirical approach in Acemoglu et al. (2015) to examine employment responses to government purchases. I find that fiscal shocks have a significant and positive impact on the employment, through the international production network. PB - Graduate Institute of International and Development Studies, International Economics Department PP - Geneva PY - 2017 PY - 2017 T1 - Fiscal shocks and international production networksan empirical investigation TI - Fiscal shocks and international production networksan empirical investigation UR - https://repository.graduateinstitute.ch/record/295954/files/heidwp20-2017_2.pdf Y1 - 2017 ER -