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when existing links experience negative shocks. Propagation is a function of access to insurance networks: well …-insured households do not cut spending when hit by shocks, leading to minimal propagation. A simple back-of-the-envelope exercise …
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In a production network, shocks originating in individual sectors do not remain confined to individual sectors but permeate through the pricing chain. The notion of "pipeline pressures" alludes to this cascade effect. In this paper we provide a structural definition of pipeline pressures to...
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