Sustainable Architecture for Finance in Europe (SAFE)
Refine
Year of publication
- 2021 (159) (remove)
Document Type
- Working Paper (87)
- Part of Periodical (66)
- Article (5)
- Periodical (1)
Is part of the Bibliography
- no (159)
Keywords
- Covid-19 (6)
- ESG (6)
- COVID-19 (5)
- monetary policy (4)
- Green Finance (3)
- Sustainability (3)
- climate change (3)
- BRRD (2)
- Bank Capitalization (2)
- Bank Resolution (2)
Institute
- Sustainable Architecture for Finance in Europe (SAFE) (159)
- Wirtschaftswissenschaften (151)
- Center for Financial Studies (CFS) (61)
- House of Finance (HoF) (57)
- Institute for Monetary and Financial Stability (IMFS) (18)
- Foundation of Law and Finance (12)
- Rechtswissenschaft (12)
- Gesellschaftswissenschaften (2)
I measure the effects of workers’ mobility across regions of different productivity through the lens of a search and matching model with heterogeneous workers and firms estimated with administrative data. In an application to Italy, I find that reallocation of workers to the most productive region boosts productivity at the country level but amplifies differentials across regions. Employment rates decline as migrants foster job competition, and inequality between workers doubles in less productive areas since displacement is particularly severe for low-skill workers. Migration does affect mismatch: mobility favors co-location of agents with similar productivity but within-region rank correlation declines in the most productive region. I show that worker-firm complementarities in production account for 33% of the productivity gains. Place-based programs directed to firms, like incentives for hiring unemployed or creating high productivity jobs, raise employment rates and reduce the gaps in productivity across regions. In contrast, subsidies to attract high-skill workers in the South have limited effects.
We study the role mutual funds play in the recovery from fast intraday crashes based on data from the National Stock Exchange of India for a single large stock. During normal times, trading activity and liquidity provision by mutual funds is negligible compared to other traders at around 4% of overall activity. Nevertheless, for the two intraday market-wide crashes in our sample, price recovery took place only after mutual funds moved in. Market stability may require the presence of well-capitalized standby liquidity providers for recovery from fast crashes.
The meme stock phenomenon has yet to be explored. In this note, we provide evidence that these stocks display common stylized facts for the dynamics of price, trading volume, and social media activity. Using a regime-switching cointegration model, we identify the meme stock “mementum” which exhibits a different characterization compared to other stocks with high volumes of activity (persistent and not) on social media. Finally, we show that mementum is significant and positively related to the stock’s returns. Understanding these properties helps investors and market authorities in their decisions.
This paper uses historical monthly temperature level data for a panel of 114 countries to identify the effects of within year temperature level variability on productivity growth in five different macro regions, i.e., (1) Africa, (2) Asia, (3) Europe, (4) North America and (5) South America. We find two primary results. First, higher intra-annual temperature variability reduces (increases) productivity in Europe and North America (Asia). Second, higher intra-annual temperature variability has no significant effects on productivity in Africa and South America. Additional empirical tests indicate also the following: (1) rising intra-annual temperature variability reduces productivity (even thought less significantly)in both tropical and non-tropical regions, (2) inter-annual temperature variability reduces (increases) productivity in North America (Europe) and (3) winter and summer inter-annual temperature variability generates a drop in productivity in both Europe and North America. Taken together, these findings indicate that temperature variability shocks tend to have stronger adverse economic effects among richer economies. In a production economy featuring long-run productivity and temperature volatility shocks, we quantify these negative impacts and find welfare losses of 2.9% (1%) in Europe (North America).
SAFE Update June 2021
(2021)
SAFE Update August 2021
(2021)
SAFE Update October 2021
(2021)
We analyze the ESG rating criteria used by prominent agencies and show that there is a lack of a commonality in the definition of ESG (i) characteristics, (ii) attributes and (iii) standards in defining E, S and G components. We provide evidence that heterogeneity in rating criteria can lead agencies to have opposite opinions on the same evaluated companies and that agreement across those providers is substantially low. Those alternative definitions of ESG also affect sustainable investments leading to the identification of different investment universes and consequently to the creation of different benchmarks. This implies that in the asset management industry it is extremely difficult to measure the ability of a fund manager if financial performances are strongly conditioned by the chosen ESG benchmark. Finally, we find that the disagreement in the scores provided by the rating agencies disperses the effect of preferences of ESG investors on asset prices, to the point that even when there is agreement, it has no impact on financial performances.
SAFE Update December 2021
(2021)
SAFE Update
(2021)
The digital newsletter format SAFE Update started in June 2021, is published six times a year, and offers selected news from SAFE along four recurrent sections:
* Focus on a specific topic
* Research Highlight
* #SAFEtheDATE, a combined outlook and review of events, and
* Handpicked, a recommendation worth reading, listening or watching from one of SAFE's Department Directors.
SAFE Update is free of charge and advertising and is designed for researchers in economics, law, and political science, as well as for readers who are interested in the areas in which financial research is applied.