Measuring downstream supply chain losses due to power disturbances.

ABSTRACT: Power outages in the U.S. affect many firms' economic activity and are likely to result in downstream supply chain disruptions. This paper examines the impact of power disturbances in the supply chain for four industries: manufacturing, durable goods manufacturing, nondurable goods manufacturing, and total private industry. This indirect impact includes the losses at downstream firms that might not receive supplies on time due to disturbances at their suppliers' facilities. This is measured using observations of value added before and after power disturbances rather than the more common method of modeling an economy. This paper tests four hypotheses related to the effect of power disturbances with all four of them being supported by the model results. Further, using simulation we estimate

SUBMITTER: Thomas D 

PROVIDER: S-EPMC10092074 | biostudies-literature | 2022 Oct

REPOSITORIES: biostudies-literature