CORDIS Project
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This project investigates how microeconomic shocks propagate through production networks and their impact on business cycles and asset prices. It aims to provide causal evidence linking individual technologies to broader economic outcomes.
A modern economy is an intricately linked web of specialized production units, each relying on the flow of inputs from their suppliers to produce their own output which, in turn, is routed towards other downstream units.
Recent work in economics stresses that the structure of this production network is key in determining whether and how microeconomic shocks can propagate throughout the economy and shape aggregate outcomes.This project has two main goals.
First, it aims to provide novel evidence…
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