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Abstract
In April 2010, the eruption of the Eyjafjallajökull volcano led to a week-long closure of European airspace. Some 100,000 flights were cancelled, and the journeys of 10 million passengers were grounded. This paper examines patterns of trade adjustment when transport networks are (temporarily) disrupted. Analyzing monthly trade of European countries at highly disaggregated product level, I empirically characterize the responsiveness of trade along the intensive and the extensive margin as well as the speed of trade adjustment.