Bourses EIB STAREBEI
- “Financial integration, investment and risk sharing- a granular perspective” From June 2017 until June 2018
Jonas Heipertz will carry out research on the topic “Financial integration, investment and risk sharing- a granular perspective” thanks to EIB- European Investment Bank’s support through STAREBEI (STAge de REcherche BEI-EIB) programme and under the supervision of two Tutors : Florin Bilbiie (PSE) and Natasha Valla (EIB)
Executive summary : Cross-border trade of state-contingent financial assets can smooth a country’s income stream from idiosyncratic country-specific shocks (Obstfeld and Rogoff, 1996). Cross-border risk-sharing through financial markets is especially relevant for currency unions where other stabilization mechanisms are absent. So far the literature has focused on the type of cross-border positions which are more conducive of risk-sharing (e.g. Fratzscher and Imbs, 2007) and the ability of households to smooth income and thus implement their optimal consumption plans. Less attention has been paid to the contribution of trade in financial assets by different institutional sectors (an exception is Balli and Perrucci, 2016). Moreover, to the extent that investment decisions affect future consumption possibilities, looking at the effect of international cross-border positions on insulating investment decision from transitory country shocks seem particularly relevant. Using unique datasets, this project focuses on the implication of the distribution of cross-country cross-sectors financial trade and asset/liability holdings for smoothing income streams of institutional sectors.
- “Understanding financial constraints in the MENA Region” From October 2017 until June 2018
Farshad Ravasan will carry out research on “Understanding financial constraints in the MENA Region” thanks to EIB- European Investment Bank’s support through STAREBEI (STAge de REcherche BEI-EIB) programme under the supervision of two Tutors : Fabrizio Coricelli (PSE) and Frank Betz (EIB) and Christoph Weiss (EIB).
Executive summary : Recent studies argue that MENA financial sectors deliver poor access outcomes that are attributed to low credit demand in the region. In this project, we investigate the role of different channels such as quality of institutions, property rights, entrepreneurial human capital, informality and business cycles.