Information Network, Production Linkages, and Shock Transmissions

In a modern market economy, firms are interconnected, and production linkages are complex. However, little is still known about how firms form their expectations about the aggregate economy and how these expectations are influenced by other firms. This project will explore data on firms' beliefs, attention allocation, and production linkages, and will develop a new economic framework to better understand the process of expectation formation among firms in a network setting.