Abstract

We simulate the inter-firm trading network which consists of approximately 1 million nodes, and we estimate the firm sales in Japan. We apply the gravity interaction model to the real Japanese inter-firm trading network to calculate the money transport between firms. Sales of each firm are evaluated through the scaling relation between the money flow and the sales, and then the total sales are calculated as an economic indicator. This calculation method is applicable to other situations. As an example, we present an estimation of sales decrease caused by the blackout due to the Hokkaido earthquake in September 6, 2018. The total sales are calculated in both cases: before and just after the earthquake. The total loss of sales is estimated as 35 billion yen per day for direct decrease in the firm sales in Hokkaido, while as 90 billion yen per day for indirect decrease in the other areas. The indirect sales decrease is about 2.6 times as well as the direct sales decrease.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.