Young economists’ competition 2019 – find out more
CEMFIBreaking the feedback loop: macroprudential regulation of banks’ sovereign exposures
Jorge develops a model to study the feedback loop between sovereign and banking crises. He presents a model showing that a deterioration in the solvency of sovereign debt leads to a deep recession and a contraction in bank lending.
London School of EconomicsTracing the International Transmission of a Crisis Through Multinational Firms
Marcus studies how multinational firms transmit the effects of a localised banking crisis across borders. After being hit by a credit shock, parent firms withdraw equity from their affiliates, reduce intra-firm trade with them and require more long-term lending from them.
Francisco Alberto Castellanos Sosa
University of Texas at AustinEurope's income convergence and the latest global financial crisis
Francisco Alberto estimates the rate of convergence of economic output among EU countries from 1973 to 2012. His results indicate that EU membership has contributed towards absolute and conditional convergence, mainly driven by new member countries.
Kathrin de Greiff
University of ZurichBeing stranded on the carbon bubble? Climate policy risk and the pricing of bank loans
Kathrin studies whether banks account for climate policy risk when pricing their loans. She finds that, after 2015, the loan rate charged to fossil fuel firms was higher than that charged to non-fossil fuel firms, showing that the financial risk of the former in relation to other firms has been priced in since 2015.
University of PotsdamA search and matching approach to business-cycle migration in the euro area
Janine investigates the link between work-related migration and the business cycle in the euro area. She finds that the impact of migration on country-specific wages and unemployment depends crucially on the characteristics of immigrants and natives. She also shows that the ratio of employed migration to unemployed migration has a significant impact on differences in the unemployment rate in response to business cycle shocks.
Université Lumière Lyon 2Heterogeneity, rigidity and convergence of labor markets in the euro area
Jocelyn studies the welfare implications of labour market reforms. He finds that convergence in labour markets can lead to substantial welfare gains.
Stanford UniversityMoney and banking in a New Keynesian model
Ciaran studies the impact of different operational frameworks on monetary policy implementation. He shows that interest rate policy is stronger when the central bank operates a corridor system as opposed to a floor system. It is weaker when there are more nominal rigidities in banks’ balance sheets and when banks have more market power.
Hee Su Roh
Stanford Graduate School of BusinessRepo specialness in the transmission of quantitative easing
Hee Su studies how repo specialness (i.e. the difference between the normal rate and the “special” rate in a repo transaction) of sovereign bonds affects the transmission of quantitative easing to the real economy. He shows that investors with scarce bonds who can or will not benefit from cheaper funding on the repo market substitute government bonds with riskier assets.
Leslie Sheng Shen
University of California at BerkeleyGlobal vs. local banking: a double adverse selection problem
Leslie looks at firms’ decisions to fund themselves through global or local banks. She shows that bank specialisation in global rather than local information is a key mechanism driving credit allocation in globalised banking systems.