A position paper that I co-authored and that has been endorsed by all faculty at UZH’s department of economics is now available from the department main web page (in German): https://www.econ.uzh.ch/de/newsandmedia/Coronavirus-Positionspapier.html
A web site with videos and slides of the keynote lectures by Yongheng Deng and Christian Hilber at last year’s autumn forum as well along with photo impressions from the forum is available on the Center for Urban and Real Estate (CUREM) page.
As schools and universities have been shutting down around the globe, many of us in academia are wondering how we can get up to speed and to establish a stable workflow that allows us to get our podcasts, on-line lectures and tutorials out there for our students. In this post I provide a subjective list of open source tools that I am using. There are at least two reasons why open source has a key role to play in the current situation: OSS is easy to roll out quickly and in large numbers (e.g. to an army of teaching assistants for multiple tutorial session in big lectures) , without any licensing issues and in a decentralized manner. OSS is cheap . Actually it’s free. Hence, no need for financially stretched schools and universities to spend heaps of non-budgeted money on…Continue reading Open Source software for Online Teaching in the times of Corona
In a note summarizing my panel presentation at the recent Belgian Financial Forum /SUERF Conference “Cross border financial services: Europe’s Cinderella?” now appearing in the Revue bancaire et financière, I argue that cross-border banking consolidation is a prerequisite for better risk sharing in the eurozone. However, the incomplete banking union perpetuates regulatory fragmentation an d prevents cross-border consolidation from becoming economically viable. Last but not least, the regional fragmentation of banking markets within many EMU member countries remains one of the biggest obstacles to consolidation, both within and across borders. Download the note here
Our paper Channels of Risk Sharing in the Eurozone: What Can Banking and Capital Market Union Achieve? (with Egor Maslov, Iryna Stewen and Bent E. Sorensen) is now forthcoming in the IMF Economic Review. In the paper, we argue that the interplay of equity market and banking integration is of first-order importance for risk sharing in the EMU. While EMU created an integrated interbank market, “direct” banking integration (in terms of direct cross-border bank-to-real sector flows or cross-border banking-consolidation) and equity market integration remained limited. We find that direct banking integration is associated with more risk sharing, while interbank integration is not. Further, interbank integration proved to be highly procyclical, which contributed to the freeze in risk sharing after 2008. Based on this evidence, and a stylized DSGE model, we discuss implications for banking union. Our results show that real…Continue reading New paper in the IMF Economic Review
Our paper “ Holes in the Dike: The Global Savings Glut, U.S. House Prices and the Long Shadow of Banking Deregulation” (with Iryna Stewen) is now forthcoming in the Journal of the European Economic Association. In the paper, we argue that capital inflows into the U.S. greatly contributed to the housing boom in the years prior to the financial crisis. States that liberalized their banking markets earlier saw bigger run-ups in house prices (and larger busts). The reason for this was the treacherous assumption, that geographically diversified banks should be allowed higher leverage (as would be implied by value-at-risk (VaR) models of bank risk management). States that liberalized their banking markets earlier had a stronger presence of geographically diversified banks by the time the savings glut started to hit the U.S. from the mid-1990s onwards. As we show, using bank-level…Continue reading New paper in JEEA
I firmly believe that using open source software is an important prerequisite for reproducible and accessible research. We cannot expect others (think e.g. students or researchers in developing countries) to buy super-expensive software to reproduce research. We should also make sure that the code we use, including the applications we run the code on, are free and transparent. Equally, I believe that we as academics have a special responsibility to teach our students to become free and independent digital citizens. That entails keeping a healthy distance to the closed eco-systems of commercial operating systems such as Windows or MacOS (not to speak of Android or iOS) which collect ever more data about everything we do on our computers and online. GNU/Linux operating systems are an open-source alternative where we can actually decide freely how much information about ourselves we share…Continue reading Installing Linux Mint (or Ubuntu) on a Dell Precision 5530
In a new column on VoxEU entitled Banking integration in the EMU — let’s get real Mathias Hoffmann, Egor Masolv, Bent Sorensen and Iryna Stewen argue that dependence on domestic banks reduces risk-sharing in a crisis, reducing GDP growth in affected country-sectors. Benefits from banking integration are only robust to global shocks if banking integration takes the form of cross-border lending to firms and households.
Mathias Hoffmann is the Scientific Director of a new research network “Globalization of Real Estate Markets” (GREN) at the UZH Center for Urban and Real Estate Management. The objective of the network is to provide an international forum for economic research that examines how the forces of globalization shape housing markets around the world. To this end, the network collects and aggregates data on international real estate markets and organizes academic conferences, summer schools and policy events.
On Nov 29th, I gave a public lecture on China’s role in the origins and the handling of the financial crisis as part of a lecture series commemorating the 10th anniversary of the global financial crisis. Building on my research with Iryna Stewen and Yi Huang, I argue that global imbalances were an important factor in the run-up of the crisis. But the crisis was ultimately caused by U.S.specific factors (lax supervision, political pressure to increase home ownership, weak incentives for proper screening). During the crisis, China reacted with a massive fiscal expansion. This contributed to stabilizing global demand but it also exacerbated the misallocation of capital within China. The lecture slides are available here (password protected — send me an e-mail for access)