We study a competitive banking sector in which banks choose the level of risk of their asset portfolios and, upon the public disclosure of stress test results, raise funding by promising investors a repayment. We show that competition forces banks to choose risky assets so as to promise...

The rapid advance of digital technologies and their increasingly cross-cutting applications have driven global transformations that are affecting the entire economy and all of society. The coronavirus disease (COVID-19) pandemic marked a turning point in terms of how widely digital solutions are...

Are recessions drivers of structural change? Here we investigate the resilience of cities, and argue that a re-allocation of labour between industrial sectors in times of crisis induces an acceleration in structural change. Using UK data, we find that cities experienced a sharp increase in...