Using two novel administrative datasets containing monthly sales and input-sourcing information for plants and products with regional heterogeneity within India, we find that the inter- to intra-region trade ratio declines sharply after the COVID-19 induced lockdown in March 2020. The ratio...

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 network over time which prevents the inter-sectoral...