News and Announcements

Forthcoming in JPE: How corporate trade credit can help fortify supply chains during disruptions
July 16, 2020

Robert M. Townsend, together with co-authors Niklas Amberg, (link is external) Tor Jacobson, (link is external)and Erik von Schedvin, (link is external) will publish a new paper in a forthcoming issue of Journal of Political Economy that investigates the role liquidity and trade credits can play throughout supply chains. “Curbing Shocks to Corporate Liquidity: The Role of Trade Credit” has important implications for understanding how corporations might be affected – and recover – from COVID-triggered interruptions.

Read more: Professor Townsend shares key takeaways from this paper in this Q & A.

Shocks and economic disruption: Networks, insurance, and propagation
April 20, 2020

How might the economic consequences of the global pandemic spread through an economy?

This column reports evidence from a household survey of village communities in Thailand, which sheds light on how a large shock experienced by one household may be mitigated by informal insurance networks. If not insured, however, it will propagate to others through local supply chains, leading to longer-term low-productivity structural shifts.

The research findings indicate the importance of a robust public response and improved market infrastructure for shocks like Covid-19.

Read more in Global Dev.