How demand shocks propagate through an input-output network
Previous studies report the propagation of shocks via supply chains from downstream, but little is known about the propagation from customers to suppliers driven by demand shocks. This column uses Japanese firm-level input-output data to fill this gap. The authors find that negative demand shocks only propagated from large exporters to larger suppliers during the global
United States Japan General Output Network Propagation Of Idiosyncratic Shocks In Production Networks National Bureau Of Economic Research Network Origins Of Aggregate Fluctuations
Source: voxeu.org