Delli Gatti, Domenico; Grugni, Elisa - 2021
-stream firms. We consider two scenarios. In the first one, because of the lockdown all the upstream firms are forced to cut … production. This generates a sizable down-turn during the lockdown due to the indirect effects of the shock (network based … financial accelerator). In the second scenario, only those upstream firms located in the "red zone" are forced to contract …