This paper presents a tractable model of endogenous production networks with fixed costs associated with the formation of links between firms. The model consists of a finite number of firm types producing differentiated products. Each firm is characterized by firm-specific parameters describing...

We study the aggregate effects of sectoral productivity shocks in a multisectoral New Keynesian open-economy model that allows for asymmetric input-output linkages, both within and between countries, as well as for heterogeneity in sectoral Calvo-type price stickiness. Asymmetries in the...

Since the beginning of the Russo-Ukrainian war, Western countries have implemented one of the most extensive sanction packages in history against Russia. This paper employs the Multi-region Input-Output model to assess which sectors of the Russian economy are most likely to experience economic...