Systemic Risk in the Broad Economy: Interfirm Networks and Shocks in the U.S. Economy

Systemic Risk in the Broad Economy: Interfirm Networks and Shocks in the U.S. Economy

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Following the 2008 financial crisis, significant attention was paid to systemic risk within heavily interconnected financial networks, but little attention was paid to systemic risks in the economy at large. The authors of this report address that gap, detailing efforts to gather large data sets on observed interfirm linkages, procedures to infer missing data on network linkages, and an approach to calibrate likely connections to financial data.