In this paper we analyze the impact of idiosyncratic shocks in a sector's supply chain on its export volume. In particular, we combine sectoral input-output linkages based on the production network of 172 countries and 12 sectors from 1990 to 2015 and information on extreme weather events to...

Size matters in banking. In this paper, we explore whether shocks originating at large banks affect the probability of distress of smaller banks and thus the stability of the banking system. Our analysis proceeds in two steps. In a first step, we follow Gabaix (2008a) and construct a measure of...

Size matters in banking. In this paper, we explore whether shocks originating at large banks affect the probability of distress of smaller banks and thus the stability of the banking system. Our analysis proceeds in two steps. In a first step, we follow Gabaix (2008a) and construct a measure of...