The access to a large variety of products is one of the main sources of gains from international trade and globalization. When an economy goes through a crisis, aggregate demand shrinks resulting in fewer product varieties being imported. In this paper we quantify short-run and medium-run...

We propose a linear general interdependence model of the world economy, and use United Nations Statistics Division data to estimate its parameters. This allows us to assess the propagation through the channel of international trade of an exogenous shock to one country's autonomous expenditures,...