Incidence on Real Value Added in Production Networks

I develop a nonparametric, constant-returns general-equilibrium model with production networks, heterogeneous households, and firm-level wedges between prices and marginal costs. For any partition of firms into clusters, I derive numeraire-invariant sufficient statistics for first-order changes in the real value added of clusters. I implement the framework for U.S. industries using BEA input–output and production accounts, BLS/OEWS occupations, and CEX consumption bundles, and document heterogeneous sectoral comovement with aggregate TFP systematically linked to network position.