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This paper introduces the concept of diffusion of shocks in a macroeconomic network consisting of inter …-sectoral production linkages. I show that if sectors have different reaction horizons it would lead to diffusion of shocks through the … production linkages between different sectors thus generating sectoral shock amplification as one sector reacts to another …
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the competition shock to the European textile sector, triggered by the 2001 removal of import quotas on Chinese textiles …
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We analyze binary choice models in communication networks, in which both, the formation of links in the network as well as the action choices are endogenous. We provide a complete characterization of the equilibrium action choices and networks, where agents choose their strategies - actions and...
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