Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237760 
Year of Publication: 
2021
Series/Report no.: 
Tinbergen Institute Discussion Paper No. TI 2021-027/III
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
This paper studies shock transmission across macroeconomic sectors in the UK, using data from the Bank of England's Flow of Funds statistics. We combine two different approaches to quantify the spread of shocks to assess whether sectors with large bilateral economic linkages as measured through network data have a greater statistical likelihood of shock transmission between them. The combination of both approaches reveals the Monetary Financial Institutions sector's role as shock absorber, and identifies the most important channels of shock transmission. The inferential discrepancies between network data and the actual spillovers highlight the contribution of the proposed methodology.
Subjects: 
Flow of Funds
contagion
epidemiology
intersectoral networks
Gibbs sampling
Bayesian priors
JEL: 
E37
E32
E01
G01
Document Type: 
Working Paper

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