combines the uncertainty shock idea of Bloom (2009) with a model of international trade, extending the idea to the open economy …. Firms import intermediate inputs from home or foreign suppliers, but with higher costs in the latter case. Due to fixed … costs of ordering firms hold an inventory of intermediates. We show that in response to an uncertainty shock firms optimally …

networks. In this paper we incorporate production barriers induced by COVID-19 shock into a Ricardian model with sectoral … shock has a considerable impact on most economies in the world, especially when a share of the labor force is quarantined …. Moreover, we show that global production linkages have a clear role in magnifying the effect of the production shock. Finally …

empirical literature studying the “China shock.” We find that the China shock leads to average welfare increases in most U …

information on the export and import value by firm, country, product and year for the period 2011-2019. Problems arising from the …

measure to evaluate processing frictions is the time it takes to import. In this paper we translate import processing times to … buffer processing shocks. Based on this theory, we employ detailed data on import processing dates, instrumental variables …, and firm-product-origin level import data to estimate import processing costs. Evaluated at the median, import processing …

firms that do not directly import therefore depends on the extent that wholesalers are a feature of input supply within an …