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 …

This paper examines the role of sectoral spillovers in propagating sectoral shocks in the broader economy, both in the … past and during the COVID-19 pandemic. In particular, we study how shocks that occur within a sector itself and spillovers … from shocks to other sectors affect sectoral activity, for a large sample of countries from 1995 to 2014. We find that both …

We quantify and explain the firm responses and worker impacts of foreign demand shocks to domestic production networks …. To capture that firms can be indirectly exposed to such shocks by buying from or selling to domestic firms that import or … estimates of firm responses suggest that Belgian firms pass on a large share of a foreign demand shock to their domestic …