Working Papers:

Production and Financial Networks in Interplay: Crisis Evidence from Supplier-Customer and Credit Registers (2023) (with G. Jiménez, E. Moral-Benito, J-L. Peydró, F. Vega-Redondo)[revise & resubmit]

Abstract: We 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. 

Promotion through Connections: Favors or Information? (with Yann Bramoullé) (2018) [revise & resubmit]

Abstract: Connections appear to be helpful in many contexts such as obtaining a job, a promotion, a grant, a loan or publishing a paper. This may be due to favoritism or to information conveyed by connections. Attempts at identifying both effects have relied on measures of true quality, generally built from data collected long after promotion. This empirical strategy faces important limitations. Building on earlier work on discrimination, we propose a new method to identify favors and information from classical data collected at time of promotion. Under natural assumptions, we show that promotion decisions look more random for connected candidates, due to the information channel. We obtain new identification results and show how probit models with heteroscedasticity can be used to estimate the strength of the two effects. We apply our method to the data on academic promotions in Spain studied in Zinovyeva & Bagues (2015). We find evidence of both favors and information effects at work. Empirical results are consistent with evidence obtained from quality measures collected five years after promotion.

Published and accepted papers:

Measuring the Input Rank in Global Supply Networks (2023)  (with  L. Fattorini and A. Rungi) The World Economy, Forthcoming

Polarization in Networks: Identification-alienation Framework (2022), with  A. Ozkes,  Journal of Mathematical Economics.

A Noncooperative Model of Contest Network Formation (2021),   Journal of Public Economic Theory.

Contagious Disruptions and Complexity Traps in Economic Development (2017),  with Charlie Brummitt, Paolo Pin, Matthew H. Bonds, and Fernando Vega-Redondo, Nature Human Behavior.  Press coverage:  New Scientist, MIT Technology Review.

Older and retired papers:

Production Networks (with Fernando Vega-Redondo) (2016) 

In progress:

Learning Trade Opportunities through Production Network (with F. Serti, F. Vega-Redondo)

Interventions in Networks (with G. Como, F. Fagnani, F. Vega-Redondo)