Geopolitical#292tier 2experimental liveNew

sanctions supply chain passthrough

cadence: Eventdata: mediumshort only
paper
2021
Source
Carvalho, V.M., Nirei, M., Saito, Y.U., & Tahbaz-Salehi, A. (2021). "Supply chain disruptions: Evidence from the Great East Japan Earthquake." Quarterly Journal of Economics 136(2), 1255-1321.
Read the paper →

What it checks

When a country a company sources inputs from gets sanctioned, the downstream company tends to drift down for 1-3 months due to supply-chain disruption.

Mechanism

Supply-chain disruptions in upstream suppliers transmit to downstream firms with 1-3 month lag and ~3x amplification when supplier is critical. Sanctions on a supplier country are the cleanest exogenous shock - Carvalho-Nirei-Saito-Tahbaz-Salehi 2021 network channel.

No production champion data for this family yet. Stats appear once the discovery pipeline promotes at least one strategy with this family tag, or once a multi-family blend that includes it earns a champion slot.

Signal rule

Filter ofac_corporate_exposure rows on supply-chain keywords (supply/supplier/sourcing/component/raw-material/import/manufactur); OFAC action against filtered country -> SHORT downstream 30/60/90d.

Data dependencies

  • daily_prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

  • ofac_sdn

    Worker data table — see services/worker schema.

  • ofac_corporate_exposure

    Worker data table — see services/worker schema.

Expected edge

Paper alpha
150-400 bps over 30-90d (modeled)
Paper window
T+1 to T+90d

Carvalho et al 2021 QJE network passthrough; internal target 150-400 bps over 30-90d.

Example tickers where this is likely to fire

Illustrative only — the signal fires based on the live data, not a fixed list.

Related families

Explore sanctions supply chain passthrough on alphactor.ai

See which tickers this family is currently firing on, with live signals and rankings.

For informational and educational purposes only. Not financial advice. Learn more