Huremovic, KenanJiménez, GabrielMoral Benito, EnriquePeydró, José-LuisVega-Redondo, FernandoUniversidad Carlos III. Departamento de Economía2024-06-072024-06-072024-06-062340-5031https://hdl.handle.net/10016/43952We show that bank credit shocks to firms propagate upstream and downstream along the production network, with stronger effects for upstream than downstream propagation. Our identification strategy relies on: (i) administrative datasets from Spain on supplier-customer transactions and bank loans; (ii) a standard operationalization of bank credit-supply shocks during the Global Financial Crisis; and (iii) a general equilibrium model of an interfirm production network economy with financial frictions that is structurally estimated. Our results indicate that the network propagation leads to a 50% increase in the aggregate effects of bank credit supply shocks on GDP growth, with equally important first-order versus higher-order network effects.63engAtribución-NoComercial-SinDerivadas 3.0 EspañaSupply ChainsShock PropagationCredit SupplyReal Effects Of Finance.working paperEconomíaopen accessDT/0000002145