CORDIS Project
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MICRO2MACRO investigates how individual production units influence broader economic outcomes through their interconnected decisions. It develops new theories on market power, examines innovation dynamics within supply chains, and utilizes transaction-level data to enhance economic analysis.
MICRO2MACRO proposes a research agenda where macroeconomic outcomes emerge as the equilibrium aggregation of decisions by interlinked micro-units of production operating in narrow, possibly frictional, markets and subject to localized shocks.
Under this broad agenda, the project focuses on three different themes.
The first theme of MICRO2MACRO develops novel theory on market power in production networks and explores how this perspective may inform policy makers and academics.
It asks the follow…
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