This paper empirically investigates the propagation of fims' expectations within the European Union (EU). To this end …

when existing links experience negative shocks. Propagation is a function of access to insurance networks: well …-insured households do not cut spending when hit by shocks, leading to minimal propagation. A simple back-of-the-envelope exercise …

the shock propagation ultimately saturates the economy. Rates of saturation differ substantially depending on the …

receive any group subsidy but were linked through supply chains with a recipient firm. Our results indicate the propagation of …

We show how on-the-job search and the propagation of shocks to the economy are intricately linked. Rising search by …

invest when the aggregate demand is high. This causes a propagation of investment across sectors. When the investment follows … an (S,s) policy, the propagation size can exhibit a significant fluctuation. We characterize the probability distribution … of the propagation size, and show that its variance can be large enough to match the observed investment fluctuations. We …