covariances). We then use this framework to run counterfactuals changing the degree of destination market diversification …, we find that the effect of increased destination market diversification is quantitatively important in reducing aggregate …

technological diversification. Production makes use of different input varieties, which are subject to imperfectly correlated shocks …. In our model, the expansion in the number of varieties provides diversification benefits against variety-specific shocks …

assess countries' extent of sectoral diversification. The productive structure of a country tends to be risky when the …