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Dr Vasco Carvalho Awarded ERC Grant for MACRONETS Research

last modified Oct 24, 2013 09:20 AM

Dr Vasco Carvalho, a Cambridge-INET Research-Theme Co-ordinator, has been awarded an ERC Starting Grant for his research 'Production networks in Macroeconomics (MACRONETS)'.


The organization of production in modern economies is organized around supply chains or production networks. Recent work in economics stresses that the structure of these production networks is key in determining whether and how microeconomic shocks – affecting only a particular firm or technology – can propagate throughout the economy and shape aggregate outcomes.
The ERC funded project MACRONETS, aims to further our understanding of these production networks and their impact on the macroeconomy. First, it aims to provide novel evidence that the origins of aggregate fluctuations can be traced back to individual technologies interconnected by input-supply relations. Second, it aims to shed light on the process of formation of these production networks over time.

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