volatility is not necessarily a sufficient statistic for the likelihood of large downturns. Rather, depending on the shape of the …

aggregate volatility decays is determined by the structure of the network capturing such linkages. Our main results provide a …, but also indirectly to the rest of the economy. Our results highlight that sizable aggregate volatility is obtained from …

the supply network determine both whether aggregate volatility disappears as the number of sectors increases (i …-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 …