We model an organization as a hierarchy of managers erected on top of a technology (here consisting of a collection of plants). In our framework, the role of a manager is to take steps to reduce the adverse consequences of shocks that affect the plants beneath him. We argue that different...

This paper explores how changes in credit market competition may result in a less pronounced effect of credit conditions on the real economy, and low volatility. Using the state-level deregulation of the U.S. banking system in the 1980s as a natural experiment, I examine whether changes in...