Cascades in networks and aggregate volatility - Info and Reading Options

The Open Library:

"We provide a general framework for the study of cascade effects created by interconnections between sectors, firms or financial institutions. Focusing on a multi sector economy linked through a supply network, we show how structural properties of the supply network determine both whether aggregate volatility disappears as the number of sectors increases (i.e., whether the law of large numbers holds) and when it does, the rate at which this happens. Our main results characterize the relationship between first order interconnections (captured by the weighted degree sequence in the graph induced by the input-output relations) and aggregate volatility, and more importantly, the relationship between higher-order interconnections and aggregate volatility. These higher-order interconnections capture the cascade effects, whereby low productivity or the failure of a set of suppliers propagates through the rest of the economy as their downstream sectors/firms also suffer and transmit the negative shock to their downstream sectors/firms. We also link the probabilities of tail events (large negative deviations of aggregate output from its mean) to sector-specific volatility and to the structural properties of the supply network"--National Bureau of Economic Research web site.

Search for “Cascades in networks and aggregate volatility” downloads:

Visit our Downloads Search page to see if downloads are available.

Find “Cascades in networks and aggregate volatility” in Libraries Near You:

Read or borrow “Cascades in networks and aggregate volatility” from your local library.

• The WorldCat Libraries Catalog: Find a copy of “Cascades in networks and aggregate volatility” at a library near you.