Many firms, banks, or other economic agents embedded in a network of codependencies may experience a contemporaneous, sharp drop in functionality or productivity following a shock—even if that shock is localized or moderate in magnitude. We offer an extended review of motivating evidence that...

We model contagions and cascades of failures among organizations linked through a network of financial interdependencies. We identify how the network propagates discontinuous changes in asset values triggered by failures (e.g., bankruptcies, defaults, and other insolvencies) and use that to...

We model the production of complex goods in a large supply network. Each firmsources several essential inputs through relationships with other firms. Due to the risk of suchsupply relationships being idiosyncratically disrupted, firms multisource inputs and strategicallyinvest to make...