impact of a shock can be boiled down into two components: its "pure" technology effect; and its effect on allocative …

the direct impact of a shock and the magnitudes of the downstream and the upstream indirect effects. We then investigate … through the input-output network, with a pattern broadly consistent with theory. Quantitatively, the network-based propagation …, capturing the fact that the local propagation of a shock to an industry will fall more heavily on other industries that tend to …

initial response to the shock by generating additional curvature in the relationship between the shock and aggregate demand … magnification of the welfare losses due to a negative shock through these second-order effects. Nominal rigidities may also induce a …

probability of disaster leads to a collapse of investment and a recession, an increase in risk spreads, and a decrease in the … of business cycle dynamics, especially sharp downturns in investment and output such as 2008-IV …

We study a model of lumpy investment wherein establishments face persistent shocks to common and plant …-specific productivity, and nonconvex adjustment costs lead them to pursue generalized (S,s) investment rules. We allow persistent … the first model consistent with available evidence on establishment-level investment rates. Examining the implications of …

work. we find that a high level of urbanization magnifies the investment reduction in response to an external shock. This … determinant of the private investment response. We look at a simple model of political-economic equilibrium to make this intuition … find that ambiguities abound: domestic politics can magnify or dampen the effect of the external shock. In our empirical …

firm characteristics - Tobin's Q, past investment, earnings-price ratios, market betas, and idiosyncratic volatility of … returns by aggregate investment and valuation ratios; and v) a downward sloping term structure of risk premia for dividend … strips. Our model delivers testable predictions about the behavior of firm-level real variables - investment and output …