Paper of Mariya Teteryatnikova in American Economic Journal: Macroeconomics

Congratulations  to Mariya Teteryatnikova, Assistant professor of the Department of Theoretical Economics, on the publication of her paper "Income Differences, Productivity and Input-Output Networks" in the top-field journal "American Economic Journal: Macroeconomics"

Below is a short summary of the paper:
We study the importance of input-output (IO) linkages and sectoral productivity (TFP) in determining cross-country income differences. We find that while highly connected sectors are more productive than the typical sector in poor countries, the opposite is true in rich ones. To assess the quantitative role of linkages and sectoral TFP differences in cross-country income differences, we decompose cross-country income variation using a multi-sector general equilibrium model. We find that (i) IO linkages substantially amplify fundamental sectoral TFP variation but (ii) this amplification is significantly weaker than the one suggested by a simple IO model with an aggregate intermediate good.