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Highlights
Building an Alliance to Map Global Supply Networks
Pichler, A., Diem, C., Brintrup, A., Lafond, F., Magerman, G., Buiren, G., Choi, T., Carvalho, V. M., Farmer, J. and Thurner, S.
Science, Volume 382 (2023)
Government agencies and national banks are called upon to support an effort to map the billions of connections in the global supply network which, among other impacts, could reduce tax evasion by as much as €130 billion (about £113 billion) annually in the European Union.
With the help of international alliances, understanding supply networks could also improve supply security, promote objective monitoring of the green transition and strengthen human rights compliance.
Anton Pichter, one of the co-authors in the study, says that 'for a long time, it was unthinkable to analyse the global economy at the company level, let alone its complex network of supply interconnections'.
But now there are ‘unimaginable opportunities for the first time’.
Quoted and adapted from a CSH press release
News in brief
Research Themes
Covid-19 Research
The Cambridge-INET led, COVID-19 Economic Research website has an extensive collection of special features, research papers, blogs and videos, by Cambridge Academics that look into the pandemic and it’s economics effects,
Dr. Constantine Yannelis' visit
We were delighted to welcome Dr. Constantine Yannelis to the Janeway Institute from 5th June to 16th July this summer. He was hosted by Prof. Florin Bilbiie, Prof. Meredith Crowley and Prof. Tiago Cavalcanti.
Dr. Yannelis is an Associate Professor of Finance at Chicago Booth, a faculty research fellow at the National Bureau of Economic Research and an Associate Editor at the Review of Corporate Finance Studies. His research focuses on household finance, corporate finance, public finance, human capital and student loans.
In 2021, Dr. Yanneils won the 2021 AQR Young Researcher Award, recognizing talented new academics producing innovative and impactful research.
Arrol Adam Lecture: The Failures of Economic Policy – Blame Theory not Central Bankers
The Janeway Institute is co-sponsoring the Arrol Adam Lecture with Fitzwilliam College on Thursday Oct 26th. It is entitled 'The Failures of Economic Policy – Blame Theory not Central Bankers' on Thursday Oct 26th and American Economist Andrew Smithers will be in conversation with Martin Wolf from the Financial Times.
Capability Accumulation and Conglomeratization in the Information Age
This paper by Professor Matt Elliott with Andrew Koh (PhD. candidate, MIT) and Dr. Jun Chen (Associate Professor, Renmin University of China) has been accepted for publication in the Journal of Economic Theory.
The past twenty years have witnessed the emergence of internet conglomerates fueled by acquisitions.
The authors build a simple model of network formation to study this. Following the resource-based view of competitive advantage from the management literature they endow firms with capabilities which drive their competitiveness across markets. Firms can merge to combine their capabilities, spin-off new firms by partitioning their capabilities, or procure unassigned capabilities.
They study stable industry structures (stable networks) in which none of these deviations are profitable and find an upper and lower bound on the size of the largest firm, and show that as markets value more of the same capabilities abrupt increases in these bounds occur.
