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Keywords:production networks 

Working Paper
Sectoral Impact of COVID-19: Cascading Risks

Workers are unequal in the face of the COVID-19 pandemic: Those who work in essential sectors face higher health risk whereas those in non-essential social-consumption sectors face greater economic risk. We study how these health and economic risks cascade into other sectors through supply chains and demand linkages. In the U.S., we find the cascading effects account for about 25-30% of the exposure to both risks. The cascading effect increases the health risk faced by workers in the transportation and retail sectors, and it increases the economic risk faced by workers in the textile and ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 31

Working Paper
Accounting for the Sources of Macroeconomic Tail Risks

Using a multi-industry real business cycle model, we empirically examine the microeconomic origins of aggregate tail risks. Our model, estimated using industry-level data from 1972 to 2016, indicates that industry-specific shocks account for most of the third and fourth moments of GDP growth.
Working Papers , Paper 18-8

Construction’s Impact on Other Industries during the Great Recession

Industries that trade heavily with the construction industry were hit sooner and harder by the Great Recession than those that don’t.
On the Economy

Working Paper
Misallocation and Intersectoral Linkages

We analytically characterize the aggregate productivity loss from allocative distortions in a setting that accounts for the sectoral linkages of production. We show that the effects of distortions and the role of sectoral linkages depend crucially on how substitutable inputs are. We find that the productivity loss is smaller if input substitutability is low. Moreover, with low input substitutability, sectoral linkages do not systematically amplify the effects of distortions. In addition, the impact of the sectors that supply intermediate inputs becomes smaller. We quantify these effects in ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 30

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Osotimehin, Sophie 2 items

Popov, Latchezar 2 items

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