Highlights 2019

WP 19/01

In “A nonlinear dynamic factor model of health and medical treatment” Franco Peracchi, with Claudio Rossetti, investigates the relationship between health and medical treatment and proposes a methodology which overcomes endogeneity problems. The authors set up and estimate a tractable dynamic factor model where observed health outcomes are driven by the individual's latent health stock. The dynamics of latent health reflects both exogenous health depreciation and endogenous health investments. The model allows for the investigation of the effect of medical treatment on current health, as well as on future medical treatment and health outcomes. The model is estimated by maximum simulated likelihood and minimum distance methods using a rich longitudinal data set from Italy. The data include detailed information on medical drug use, hospitalization, and mortality for a representative sample of elderly hypertensive patients. The results show that medical drug use significantly contributes to preventing future worsening of health. These findings suggest that policies aimed at increasing the awareness and the compliance of hypertensive patients help to reduce cardiovascular risks, consequent hospitalization and mortality.

Papers 2019

WP 19/01
A nonlinear dynamic factor model of health and medical treatment

Franco Peracchi - Claudio Rossetti

Fabrizio Mattesini

Mattesini Fabrizio


Full Professor, University of Rome “Tor Vergata”
Chairman of the Department of Economics and Finance, University of Rome “Tor Vergata”
 Einaudi Institute for Economics and Finance


New York University, Ph.D., 1986
University of Siena, BA, 1979


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Research Interests

Monetary Theory, Banking, Macroeconomics.

Selected Publications

"Liquidity and Asset Prices in a Monetary Model with OTC Asset Markets" (with E. Nosal), Journal of Economic Theory, 2016, Volume 164, pages 187-217.

“Money and Credit Redux” (with C. Gu and R. Wright), Econometrica, 2016, Volume 84, Issue 1, pages 1–32.

“Limited Commitment and the Legal Restrictions Theory of the Demand for Money” (with L. Ferraris), Journal of Economic Theory, 2014, Volume 151, pages 196-215.

“Endogenous Credit Cycles” (with C. Gu, C. Monnet and R. Wright), Journal of Political Economy, 2013, Volume 121, Issue 5, pages 940-965.

"Banking: a New Monetarist Approach" (with C. Gu, C. Monnet and R. Wright), The Review of Economic Studies, 2013, Volume 80, Issue 2, pages 636-662.

Working Papers

“Inflation and Welfare in a Competitive Search Equilibrium with Asymmetric Information” (with L. Carbonari and R. Waldmann), University of Rome “Tor Vergata”, mimeo, 2018.

“Money and Collateral” (with L. Ferraris), University of Rome “Tor Vergata”, mimeo, 2018.

“Optimal Monetary Policy in a Pure Currency Economy with Heterogeneous Agents” (with N. Amendola and L. Ferraris), University of Rome “Tor Vergata”, mimeo, 2017


Phone: +39.06.4792.4735
Fax: +39.06.4792.4872
E-mail: fabri.mattesini[at]gmail.com
Department of Economics and Finance University of Rome "Tor Vergata"
Phone: +39.06.7259.5723
Web: https://sites.google.com/site/mattesinifabrizio/

Andrea Polo

Andrea Polo


Assistant Professor of Finance, LUISS
Research Affiliate, Einaudi Institute for Economics and Finance.
Assistant Professor of Finance, Universitat Pompeu Fabra (on leave)
Associate Research Professor, Barcelona GSE (on leave)
Research Member, European Corporate Governance Institute (ECGI)
Research Affiliate, CEPR


University of Oxford, Ph.D., 2012


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Research Interests

Corporate Finance, Banking, Macro Finance, Corporate Governance

Selected Publications

“Regulatory Sanctions and Reputational Damage in Financial Markets” (with J. Armour and C. Mayer), Journal of Financial and Quantitative Analysis, 52(4): 1-20, 2017.

“Does Mandatory Shareholder Voting Prevent Bad Acquisitions?” (with M. Becht and S. Rossi), Review of Financial Studies, 29 (11): 3035-3067, 2016.

“Double Bank Runs and Liquidity Risk Management” (with F. Ippolito, J. L. Peydro and E. Sette), Journal of Financial Economics, 122 (1): 135-154, 2016.

Honors, Awards and Fellowships

Spanish Ministry of Economy and Competitiveness, Juan de la Cierva Fellowship, 2016

AXA Post-doctoral Fellowship, 2014

Stanford University, Rock Center for Corporate Governance, Fellowship 2013


Phone: +39.06.4792.98914
Fax: +39.06.4792.4872
E-mail: andrea.polo[at]eief.it
Web: https://sites.google.com/site/andreapolo/

Rome Workshop on Macroeconomics a.k.a. “Pizzanomics”

Every year EIEF hosts “The Rome Conference on Macroeconomics”, a.k.a. Pizzanomics. The aim is to bring together junior economists from around the world with a strong interest in Macroeconomics, and to generate a friendly environment with intensive interaction, not only during the presentations but also informally before and after. Speakers received direct invitation. The conference takes place on June with the speakers receiving invitations between January and March of each year.

Guillermo Ordoñez (University of Pennsylvania)
Luigi Paciello (EIEF)
Facundo Piguillem (EIEF)
Nicholas Trachter (FED, Richmond)

The conference has been very successful attracting very high-quality participants. Bellow is the list of Previous speakers.

1st Workshop: June 18 - 20, 2012

Venky Venkateswaran (Penn State University): “Efficiency with Endogenous Information Choice”, joint with Luis Llosa (UCLA)

Guillermo Ordonez (Yale University): “Uncertainty as Commitment”, joint with Jaromir Nosal (Columbia University)

Benjamin Moll (Princeton University): “Aggregate Implications of a Credit Crunch”, joint with Francisco Buera (UCLA)

Nicholas Trachter (EIEF): “On the Optimal Supply of Liquidity with Borrowing Constraints”, joint with Francesco Lippi (EIEF)

Alp Simsek (Harvard University): “Speculation and Risk Sharing with New Financial Assets

Saki Bigio (NYU): “Financial Risk Capacity

Ezra Oberfield (FRB, Chicago): “Business Networks, Production Chains, and Productivity: A Theory of Input-Output Architecture” (TBC)

Facundo Piguillem (EIEF): “Unemployment Insurance in Life Cycle general Equilibrium Model with Human Capital”, joint with Hernan Ruffo (UTDT) and Nicholas Trachter (EIEF)

David Lagakos (ASU): “The Decline of the U.S. Rust Belt: A Macroeconomic Analysis”, joint with Simon Adler (University of Notre Dame), and Lee Ohanian (UCLA)

2nd Workshop: 17-18 June 2013

Jean-Paul L'Huillier (EIEF): “Technological Revolutions and Debt Hangovers: Is there a link?”, joint with Dan Cao (Georgetown University)

Javier Bianchi (University of Wisconsin-Madison): “Overborrowing, Financial Crises and Macroprudential policy” joint with Enrique G. Mendoza (University of Maryland)

Saki Bigio (Columbia University): “Liquidity Management and Monetary Policy”, joint with Javier Bianchi (University of Wisconsin-Madison)

Vasco Carvalho (UPF and CREi): “Firm Dynamics and the Granular Hypothesis” Basile Grassi (Paris School of Economics)

Ezra Oberfield (FRB-Chicago): “Micro Data and Macro Technology”, joint with Devesh Raval (University of Chicago)

Jaroslav Borovicka (NYU): “Robust Preference Expansions”, joint with Lars Peter Hansen (University of Chicago)

Luigi Paciello (EIEF): “Price Setting with Customer Retention Concerns”, joint with Andrea Pozzi (EIEF) and Nicholas Trachter (EIEF)

Ali Shourideh (University of Pennsylvania, Wharton): “Optimal Taxation of Wealthy Individuals

Pablo Fajgelbaum (UCLA): “External Integration, Structural Transformation, and Internal Development: Evidence from Argentina, 1870-1914”, joint with Stephen Redding (Princeton University)

Venky Venkateswaran (NYU- Stern): “Pledgability and Liquidity: A new Monetarist Model of Macro and Financial Activity”, joint with Randy Wright (University of Wisconsin-Madison)

3rd Workshop: 12-13 June 2014

Juan Pablo Xandri (Princeton University) “Robust conditional predictions in a model of Sovereign Debt

Javier Bianchi (University of Wisconsin-Madison) “Efficient Bailouts?

Ali Shourideh (University of Pennsylvania, Wharton) “Sovereign Debt vs Redistributive Taxes: Financing Recoveries in Unequal and Uncommitted Economies” joint with Alessandro Dovis (Princeton University) and Mikhail Golosov (Princeton University)

Nicholas Trachter (FRB-Richmond) “Large and Small Sellers: A Theory of Equilibrium Price Dispersion with Sequential Search” by joint with Guido Menzio (University of Pennsylvania)

Ezra Oberfield (Princeton University) “The Global Diffusion of Ideas” joint work with Francisco Buera (FRB-Chicago, UCLA)

Matteo Maggiori (NYU-Stern) “International Liquidity and Exchange Rate Dynamics” joint work with Xavier Gabaix (NYU-Stern)

Sebastian Di Tella (Stanford GSB) “Optimal financial Regulation and the Concentration of Aggregate Risk

Ariel Zetlin-Jones (Carnegie Mellon) “Efficient Financial Crises

Saki Bigio (Columbia Business School) “Endogenous Liquidity and the Business Cycle

Edouard Schaal (NYU) “Uncertainty Traps” joint work with Pablo Fajgelbaum (UCLA) and Mathieu Taschereau-Dumouchel (University of Pennsylvania-Wharton)

4th Workshop: 22-23 June 2015

Francois Geerolf (UCLA) “Leverage and Disagreement

Venky Venkateswaran (NYU Stern) “Screening and Adverse Selection in Frictional Markets” joint with Ben Lester (FRB of Philadelphia), Ali Shourideh (University of Pennsylvania) and Ariel Zetlin-Jones (Carnegie Mellon)

Ufuk Akcigit (University of Pennsylvania) “Lack of Selection and Limits to Delegation: Firm Dynamics in Developing Countries” joint with Harun Alp (University of Pennsylvania) and Michael Peters (Yale University)

Luigi Paciello (EIEF) “International Trade and Relative Prices in Frictional Markets

Mike Waugh (NYU-Stern) “Selection, Risk and Rural-Urban Migration

Greg Kaplan (Princeton University) “The Macroeconomy According to HANK” joint with Benjamin Moll (Princeton University) and Gianluca Violante (NYU, CEPR and NBER)

Alessandro Dovis (Penn State University) “Indeterminacy in Sovereign Debt Markets: An Empirical Investigation” joint with Luigi Bocola (Northwestern University-FRB Minneapolis)

Guillermo Ordoñez (University of Pennsylvania) “Debt Crises: For Whom the Bell Tolls” joint with Harold Cole (University of Pennsylvania) and Daniel Neuhann (University of Pennsylvania)

Nicholas Trachter (FRB Richmond) “Dispersion in Relative Prices: Evidence and Theory”, joint with Greg Kaplan (Princeton University), Guido Menzio (University of Pennsylvania), and Leena Rudanko (FRB Philadelphia)

Stefanie Stantcheva (Harvard University) “Optimal Taxation and R&D Policies” joint with Ufuk Akcigit (University of Pennsylvania) and Douglas Hanley (University of Pittsburgh)

Mathieu Taschereau-Dumouchel (University of Pennsylvania-Wharton) “Coordinating Business Cycles” joint with Edouard Schaal (NYU)

5th Workshop: 27-28 June 2016

Jarda Borovička (NYU) “Identifying Ambiguity Shocks in Business Cycle Models Using Survey Data” with Anmol P. Bhandari (University of Minnesota) and Paul Ho (Princeton University)

Cosmin Ilut (Duke University) “Learning, Confidence, and Business Cycles” with Hikaru Saijo (UC Santa Cruz)

Katarina Borovickova (NYU) “Discount Rates and Employment Fluctuations” with Jarda Borovička (NYU)

Gaetano Gaballo (Banque de France) “Learning from Prices: Amplification and Sentiments” with Ryan Chahrour (Boston College)

Filip Matějka (CERGE-EI) “Electoral Competition with Rational Inattentive Voters” with Guido Tabellini (Bocconi University)

Luigi Bocola (Northwestern University) “Lending of Last Resort in an Open Economy” with Guido Lorenzoni (Northwestern University)

Salome Baslandze (EIEF) “Knowledge Diffusion, Innovation and Reallocation: The Role of the IT Revolution

Ilse Lindelaub (Yale University) “Multi-dimensional Sorting under Random Search” with Fabien Postel-Vinay (UCL, IFS and Sciences Po)

Ben Lester (FRB Philadelphia) “Interviews and the Assignment of Workers to Jobs” with Ronald Wolthoff (University of Toronto)

Gregor Jarosch (Stanford University) “Tough Middlemen” with Maryam Farboodi (Princeton University) and Guido Menzio (University of Pennsylvania)

6th Workshop: 26-27 June 2017

Ezra Oberfield (Princeton University) “Misallocation in the Market for Inputs: Enforcement and the Organization of Production” with Johannes Boehm (Sciences Po)

Jaromir Nosal (Boston College) “Market Power and Price Informativeness” with Marcin Kacperczyk (Imperial College London) and Savitar Sundaresan (Imperial College London)

Kurt Mitman (IIES, Stockholm University) “The Fiscal Multiplier” with Iourii Manovskii (University of Pennsylvania) and Marcus Hagedorn (University of Oslo)

Arlene Wong (Princeton University, FRB Minneapolis) “Trading down and the business cycle” with Nir Jaimovich (University of Zurich) and Sergio Rebelo (Kellogg School of Management)

Adrien Auclert (Stanford University) “Inequality and Aggregate Demand” with Matthew Rognlie (Northwestern University)

Vladimir Asriyan (CREi-UPF) “Sentiment, Liquidity and Asset Prices” with William Fuchs and Brett Green (UC Berkeley Hass)

Jennifer La’O (Columbia University) “Optimal Fiscal and Monetary Policy with Informational frictions” with George- Marios Angeletos (MIT)

Juan Passadore (EIEF) “Optimal Debt-Maturity Management” with Saki Bigio (UCLA) and Galo Nuño (Banco de España)

Zhen Huo (Yale University) “Organizational Equilibrium with Capital” with Marco Bassetto (FRB Chicago) and Jose Victor Rios-Rull (University of Pennsylvania)

Martin Beraja (MIT) “Counterfactual Equivalence in Macroeconomics

7th Workshop: 11-12 June 2018

Anmol Bandhari (University of Minnesota, FRB Minneapolis) “Sweat Equity in US private business” with Ellen McGrattan (University of Minnesota)

David Argente (University of Chicago and EIEF) “How do Firms Grow? The Life Cycle of Products Matters” with Munseob Lee (UC San Diego) and Sara Moreira (Northwestern University)

Thomas Winberry (University of Chicago-Booth) “Financial Heterogeneity and the Investment Channel of Monetary Policy” with Pablo Ottonello (University of Michigan)

Simon Mongey (University of Chicago-FRB Minneapolis) “Market Structure and Monetary Non- neutrality

Matthew Rognlie (Northwestern University) “The Intertemporal Keynesian Cross” with Adrien Auclert (Stanford University) and Ludwig Straub (MIT)

Giorgia Piacentino (Columbia Business School) “Money Runs” with Jason Donaldson (Washington University in St. Louis)

Pablo D’Erasmo (FRB Philadelphia) “Capital Requirements in a Quantitative Model of Banking Industry Dynamics" joint with Dean Corbae (Wisconsin School of Business)

Jason Donaldson (Washington University in St. Louis) “Netting” with Giorgia Piacentino (Columbia Business School)

Moritz Lenel (Princeton University) “Financial Stability, Monetary Policy and the Payment-Intermediary Share” with Monika Piazzesi (Stanford University) and Martin Schneider (Stanford University)

Benjamin Hebert (Stanford GSB) “Optimal Corporate Taxation Under Financial Frictions” with Eduardo Davila (NYU)

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