We develop a convex-optimization clustering algorithm for heterogeneous financial networks, in the presence of arbitrary or even adversarial outliers. In the stochastic block model with heterogeneity parameters, we penalize nodes whose degree exhibit unusual behavior beyond inlier heterogeneity....

We use a firm-level panel of 13 European countries to assess how a sector-specific shock propagates through technological linkages across innovating firms in the rest of the economy. We find that the competition shock to the European textile sector, induced by the 2001 removal of import quotas...

This appendix to the paper Elliott, Golub, and Leduc (2022): “Supply Network Formation and Fragility” gives proofs omitted in the main text, as well as some auxiliary analyses and calculations.Available at https://ssrn.com/abstract=3525459

We use the Trade Agreements Provisions on Electronic Commerce and Data and their corresponding texts to undertake network and text analysis on trade agreements with digital trade chapters to identify which countries are important in the network and how similar or different their texts of digital...

This paper documents a positive impact of customer innovation on supplier innovation across US sectors. This result is robust with respect to innovations of other firms within the same industry (industry spillovers) as well as within the same regions (geographical spillovers). Our exploration of...

Industry uncertainty networks extracted from option prices contain valuable information for business cycles. Classifying U.S. industries according to their contribution to system-related uncertainty, we uncover an uncertainty hub role for the communications, financials, IT and real estate...

The Internet has done globally for information what the printed circuit board has done for electronics and electronic components: establish a universal standard of interchange and composition and thus provide a mechanism for scalability. Australia has recently capitalized on this global trend by...

Interconnectedness is an inherent feature of the modern financial system. While it contributes to efficiency of financial services, it also creates structural vulnerabilities: pernicious shock transmission and amplification impacting banks' capitalization. This has recently been seen during the...