shocks, or the propagation of shocks through the network. Firms can replace suppliers they have lost due to exit subject to … switching costs and search frictions. This enables us to study the impact of shocks on aggregate production in an adaptive … network, and we show that depending on the nature of the shocks, adaptivity can make the network more or less stable. …

This paper investigates the degree to which immigration shock to a region propagates through supply chains. Using the … country are affected in terms of their sales, employment, and wages. We also estimate the effect of the shock on …

networks in the spatial diffusion of local economic shocks. We develop a network model that shows how a district's level of … period 1997-2013. To identify the causal effect of spatial diffusion, we exploit cross-sectional variation in the location of … local economic shocks across Africa. We further show how counterfactual exercises based on these estimates and the …

networks in the spatial diffusion of local economic shocks. We develop a network model that shows how a district's level of … period 1997-2013. To identify the causal effect of spatial diffusion, we exploit cross-sectional variation in the location of … local economic shocks across Africa. We further show how counterfactual exercises based on these estimates and the …

This study finds that even small unexpected supply shocks propagate downstream through production networks and are … strategy exploits the heterogeneous impact of the shock on importers. The results indicate that this relatively minor, non …-localized shock had a non-trivial economic impact on exposed firms and propagated downstream through affected suppliers. Additional …

Where do business cycles originate? The traditional view is that a business cycle is the result of shocks correlated … across sectors. This view is complemented by a recently emerging literature showing that idiosyncratic shocks to large or …

production networks in the propagation of shocks along two dimensions. First, we set forth a Bayesian spatial panel state … impacts of monetary policy shocks to production industries via a sparse finite Gaussian mixture model. The results suggest … substantial heterogeneities in the responses of industries to surprise monetary policy shocks. Moreover, we find that the role of …