“…Atalay (2017), for example, lays out how sectoral shocks impact business cycle fluctuations, while Baqaee and Farhi (2019) analyze the implications of modeling production networks regarding trade and tariffs. Similar models are currently applied to the Covid-19 crisis (Baqaee and Farhi, 2020), the fiscal policy response to the crisis (Hinterlang, Moyen, Röhe, and Stähler, 2021), as well as to assessing the government spending multiplier in general (Bouakez et al, 2021, andDevereux, Gente, and. How the monetary transmission channel depends on heterogenous production structures with a focus on price rigidities is investigated in Pasten, Schoenle, and Weber (2020) and Bouakez, Cardia, and Ruge-Murcia (2014).…”