Abstract:

 We study how time-to-build and delivery lags affect the propagation of sectoral and aggre
gate shocks in an economy with input-output linkages. Time-to-build significantly contributes
 to the persistence of shocks, with highly heterogeneous effects across sectors. We analyze delay
 shocks and demonstrate that bottlenecks can be identified by the product of a sector’s supplier
 and buyer centralities. Shocks propagate asynchronously through the network, generating en
dogenous fluctuations via an echo effect. These fluctuations arise due to the presence of loops in
 the network. We show that the Fourier spectrum of sectoral and aggregate output can be pre
dicted from the durations and weights of the network’s dominant cycles. Sectoral comovements
 are complex and can be decomposed into the network’s dominant walks.