Nonlinear Production Networks with an Application to the COVID-19 Crisis

Baqaee, David; Farhi, Emmanuel

doi:10.2139/ssrn.3595680

Cited by 37 publications

(44 citation statements)

References 26 publications

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“…Figure 1 presents a plot of the fall in the number of posted jobs for each week, compared to the average of the same lunar calendar week in the years 2018 and 2019. 12 At the trough of the line, which is two weeks after the 11 Most workers take a vacation of between one to four weeks during the Chinese New Year and start to search for jobs immediately after. Correspondingly, there is normally a spike of job postings right after the Chinese New Year.…”

Section: Resultsmentioning

confidence: 99%

Pandemics, Global Supply Chains, and Local Labor Demand: Evidence from 100 Million Posted Jobs in China

Fang¹,

Ge²,

Huang³

et al. 2020

SSRN Journal

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This paper studies how the COVID-19 pandemic has affected labor demand, using over 100 million posted jobs on one of the largest online platforms in China. Our data reveal that the number of newly posted jobs within the first 14 weeks after the Wuhan lockdown on January 23, 2020, was about 31% lower than that of comparable periods in 2018 and 2019. We show that, via the global supply chain, COVID-19 cases abroad and pandemic-control policies by foreign governments reduced new-job creation in China by 11.7%. We also find that firms most exposed to international trade outperformed other firms at the beginning of the pandemic but underperformed during the recovery as the virus spread throughout the world.

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Section: Resultsmentioning

confidence: 99%

Pandemics, Global Supply Chains, and Local Labor Demand: Evidence from 100 Million Posted Jobs in China

Fang¹,

Ge²,

Huang³

et al. 2020

SSRN Journal

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“…First, it only considers a demand shock-arguably the key direct impact of COVID-19 (Coibion et al 2020)-and assumes that firms have no problems sourcing inputs; in practice the pandemic also induces a supply shock which can amplify the demand shock (Guerrieri et al 2020). Second, we do not account for the indirect impacts of the shock through firms' trade linkages which are potentially important (Baqaee andFarhi 2020, Bonadio et al 2020). Third, in our framework firms do not adapt to the crisis (for example by changing products, selling online etc.).…”

Section: Introductionmentioning

confidence: 99%

The Impact of COVID-19 on Formal Firms: Micro Tax Data Simulations across Countries

Bachas¹,

Brockmeyer²,

Semelet³

2020

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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“…Such a self‐sufficient revenue district is termed a fractal economy or a nonlinear production model. [ 8 ] The extending provincial economy is composed of a large number of such fractal economies. The extending national economy will comprise of a set of provincial fractals.…”

Section: Introductionmentioning

confidence: 99%

“…[7] Those complementarities in consumption and production amplify each other. [8] Thus, the current economic environment asks for an antithesis to the economy of scale [4] in its shape of a neoclassical model. [8] This strategy is centered on the sensitivity to place and scale to sustain local communities and to provide new job opportunities while preserving the quality of the environment.…”

mentioning

confidence: 99%

Tri‐fold process integration leveraging high‐ and low‐temperature plasmas: From biomass to fertilizers with local energy and for local use

Sarafraz

Tran

Nguyen

et al. 2021

J Adv Manuf & Process

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In the present study, a series of thermochemical equilibrium modeling was conducted to assess the thermodynamic potential of biomass conversion to ammonia using thermal and nonthermal plasma at small‐ and large‐scale production. The system was designed and evaluated for five different locations in Australia including the Northern Territory, South Australia, Western Australia, and New South Wales using local biomass feedstock. The equilibrium modeling showed that the pathway of biomass to biomethane using an anaerobic digestion reactor, biomethane to hydrogen using a thermal plasma reactor, followed by conversion of hydrogen to ammonia via a nonthermal plasma reactor is a plausible route, by which the exergy efficiency of the process can be as high as ~60%. It is identified that the thermal plasma reactor required two distinct zones at 3000°C < T < 4000°C and 1500°C < T < 2500°C. The first zone aims at converting electric energy into very high temperature thermal flow while the second one enables to split methane molecules into solid carbon and hydrogen. The new ammonia process is also assessed from the viewpoint of the current industrial transformation, being accelerated by the post‐COVID economy, which moves toward local, resilient, integrated and self‐sufficient production under the umbrella of an emerging fractal economy. With respect to local production, the developed process is designed for a quick response to farm use and on‐time production in view of the demands of modern ICT‐sensor based precision agriculture. The proposed process was found to be flexible (“resilient”) against production scale, geographical location, price and type of feedstock, and source of renewable energy. The system was found to be flexible against different feedstock such as spent grape marc, mustard seed, bagasse, piggery and poultry. The system can be self‐sustained up to ~80% at T = 3500°C; with the thermal plasma reactor‐zone 2 producing the electricity requirements for the nonthermal plasma via a steam turbine power block. Finally, the system it is investigated to which degree the system is adaptable to local production, self‐sufficient, and circulatory.

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Nonlinear Production Networks with an Application to the COVID-19 Crisis

Cited by 37 publications

References 26 publications

Pandemics, Global Supply Chains, and Local Labor Demand: Evidence from 100 Million Posted Jobs in China

Pandemics, Global Supply Chains, and Local Labor Demand: Evidence from 100 Million Posted Jobs in China

The Impact of COVID-19 on Formal Firms: Micro Tax Data Simulations across Countries

Tri‐fold process integration leveraging high‐ and low‐temperature plasmas: From biomass to fertilizers with local energy and for local use

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