Predicting growth fluctuation in network economy

TL;DR

This paper introduces a method to forecast the variability in firm growth within a network economy, utilizing Japanese industry data to assess downward growth risks among interconnected firms.

Contribution

It provides a novel approach to predict growth fluctuations in networked firms using industry-specific statistical analysis.

Findings

Effective prediction of downward growth risk in firms.

Application of the method to Japanese industry data.

Insights into interdependent firm growth dynamics.

Abstract

This study presents a method to predict the growth fluctuation of firms interdependent in a network economy. The risk of downward growth fluctuation of firms is calculated from the statistics on Japanese industry.