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Partial Identification of Spatial Production Networks

Shaowen Luo, Kwok Ping Tsang, Zichao Yang

arXiv 11 Jun 2026 · General Economics

arXiv:2606.17079 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Which regional exposure conclusions are identified when public data do not observe buyer-seller links across states? We study this question by treating the missing intermediate-input spatial kernel as an unknown coupling constrained by regional activity margins, support restrictions, and auxiliary shipment moments. For linear exposure statistics, the sharp identified set is computed by transportation linear programs. Applying the method to U.S. state-sector data, we find that shipment data are inconsistent with the spatial diffuseness implied by proportional regionalization in key goods sectors. However, they do not identify a unique regional production network or a precise ranking of state exposure to local shocks. Bilateral shipment restrictions tighten the bounds, but much of the remaining uncertainty comes from large service and mixed sectors that are weakly covered by goods-movement data. The results show which exposure conclusions are supported by public data and which are imposed by maintained regionalization assumptions.

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Caliendo, Lorenzo and Parro, Fernando and Rossi-Hansberg, Esteban an… (2018) The Impact of Regional and Sectoral Productivity Changes on the U.S. Economy0.51121100%
2Acemoglu, Daron and Carvalho, Vasco M. and Ozdaglar, Asuman and Tahb… (2012) The Network Origins of Aggregate Fluctuations0.40511100%
3Adão, Rodrigo and Arkolakis, Costas and Esposito, Federico (2020) General Equilibrium Effects in Space: Theory and Measurement0.40511100%
4Atalay, Enghin (2017) How Important Are Sectoral Shocks?0.40511100%
5Baqaee, David Rezza and Farhi, Emmanuel (2019) The Macroeconomic Impact of Microeconomic Shocks: Beyond Hulten's Theorem0.40511100%
6Barrot, Jean-Noël and Sauvagnat, Julien (2016) Input Specificity and the Propagation of Idiosyncratic Shocks in Production Networks0.40511100%
7Boehm, Christoph E. and Flaaen, Aaron and Pandalai-Nayar, Nitya (2019) Input Linkages and the Transmission of Shocks: Firm-Level Evidence from the 2011 Tohoku Earthquake0.40511100%
8Boero, Riccardo and Edwards, Brian K. and Rivera, Michael K (2018) Regional Input–Output Tables and Trade Flows: An Integrated and Interregional Non-Survey Approach0.40511100%
9Carvalho, Vasco M. and Nirei, Makoto and Saito, Yukiko U. and Tahbaz… (2021) Supply Chain Disruptions: Evidence from the Great East Japan Earthquake0.40511100%
10Cross, Philip J. and Manski, Charles F (2002) Regressions, Short and Long0.40511100%

Showing the top 10 of 26 scored citations.