Emanuele Tarantino



Professor, LUISS (on-leave from the University of Mannheim).
Research Affiliate, Einaudi Institute for Economics and Finance.
Research Affiliate, Centre for Economic Policy Research (CEPR)


European University Institute, Ph.D., 2010
London School of Economics and Political Science, M.Sc., 2005
University of Salento, B.A., 2003


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Research Interests

Industrial Economics, Financial Economics, Innovation Economics.

Selected Publications

“Patent Pools, Vertical Integration, and Downstream Competition” (with M. Reisinger), RAND Journal of Economics, 2019, 50(1), 168-200.

“Lending Standards over the Credit Cycle” (with G. Rodano and N. Serrano-Velarde), Journal of Financial Economics, 2018, 31(8), 2943-2982.

“Bankruptcy Law and Bank Financing” (with G. Rodano and N. Serrano-Velarde), Review of Financial Studies, 2016, 120(2), 363-382.

“Vertical Integration, Foreclosure and Productive Efficiency” (with M. Reisinger), RAND Journal of Economics, 2015, 46(3), 461-470.

“Conversations with Secrets” (with B. Ganglmair), RAND Journal of Economics, 2014, 45(2), 273-302.

Working Papers

“Cheap Trade Credit and Competition in Downstream Markets” (with M. Giannetti and N. Serrano-Velarde).

“Learning When to Quit: An Empirical Model of Experimentation in Standards Development” (with B. Ganglmair and T. Simcoe).

“The Effects of Horizontal Mergers When Firms Compete in Prices and Investments” (with M. Motta).

Honors, Awards and Fellowships

Economic Advisory Group on Competition Policy of the European Commission (since 2017)

Unicredit-Mediocredito Franco Modigliani Fellowship (2010-2014)


Fax: +39.06.4792.4872
E-mail: emanuele.tarantino[at]eief.it
Web: https://sites.google.com/site/etarantino//

Highlights 2020

WP 20/04

In “The Optimal COVID-19 Quarantine and Testing Policies” Facundo Piguillem and Liyan Shi analyze whether the intensity and the duration of the implemented quarantines to contain the spread of COVID-19 make sense when one considers the high costs in lost production. They find that the observed policies are very close to a simple welfare maximization problem of a planner who tries to stop the diffusion of the disease. These extreme measures seem optimal in spite of the high output cost that it may have in the short run, and for various curvatures of the welfare function. The desire for cost smoothing reduces the intensity of the optimal lockdown while extending it for longer, but it still amounts to reducing economic activity by a half. They then analyze the possibility of either complementing or substituting the lockdown policy with massive random testing. They argue that, under some preliminary estimates of the cost of testing, testing could generate sizeable welfare gains and almost eliminate the need for indiscriminate quarantines.

WP 20/03

In "Sampling properties of the Bayesian posterior mean with an application to WALS estimation”, Giuseppe De Luca, Jan Magnus and Franco Peracchi explore the finite sample properties of weighted average least squares (WALS). In a frequentist setting, the sampling accuracy of this and other classes of learning methods that rely on Bayesian ideas is typically assessed using the variance of the posterior distribution of the parameters of interest given the data. This may be permissible when the sample size is large because, under the conditions of the Bernstein–von Mises theorem, the posterior variance agrees asymptotically with the frequentist variance. In finite samples, however, things are less clear. To explore this issue, the Authors first consider the frequentist properties (bias and variance) of the posterior mean in the important case of the normal location model, which consists of a single observation on a univariate Gaussian distribution with unknown mean and known variance. Based on these results, they derive new estimators of the frequentist bias and variance of the WALS estimator in finite the proposed estimators by a Monte Carlo experiment with design derived from a real data application about the effect of abortion on crime rates.

WP 20/02

In “K-Returns to Education”, Luigi Guiso (with Fagereng, A., Holm, M., and L. Pistaferri) analyses whether formal general education pays off in capital markets as it does in the labor market. Using a compulsory school reform in Norway to obtain exogenous variation in years of schooling, the authors show that, while education predicts returns to wealth in OLS estimates, it has no casual effect in IV regressions or when unobserved heterogeneity is taken care of using a twins design. General education predicts returns to wealth only because it is correlated with ability and risk tolerance, and the latter seem to be the relevant drivers of heterogeneity in individual returns on capital. This is at odds with the evidence on labor earnings, where general education has a casual effect on returns. Where does this asymmetry come from? According to the authors, one possibility is that general education matters for labor earnings because it signals ability, which is relevant in the labor market, but clearly irrelevant for returns on self-managed wealth.

WP 20/01

In “The Insurance Role of the Firm” Luigi Guiso, with Luigi Pistaferri, reviews the recent literature on the risk sharing role of the firm and provides a framework for studying risk sharing between workers and firm owners vis-à-vis firms specific shocks of different nature. The authors show how this framework can be taken to the data to provide estimates of the extent of insurance within the firm. Their estimates from a large number of Western countries strongly support the view that in capitalist economies the firm is a large, albeit far from complete, wage insurance instrument. They quantify the welfare benefits of firm-provided wage insurance, show evidence on how workers react to firms shocks passed through wages, and discuss the future role of the firm as a wage insurance provider.

Teaching at EIEF is centered on the Rome Masters in Economics (RoME), a challenging, two-year graduate course (Laurea Magistrale), entirely taught in English, designed for a small group of selected students with high drive and potential. RoME, which is offered jointly with LUISS university, started in 2017 and gives students the tools to pursue high-quality independent research. It is a gateway to Ph.D. programs in the world’s leading universities, or the foundation for a career as a professional economist in private and public institutions. More information on RoME can be found in its website.

In the past, EIEF offered courses complementing the curricula of PhD programs of Italian universities and supervised selected students enrolled in those programs. See the Graduate Program for more information on the courses offered in previous years and on the students attending them.

The start of the RoME program suggested the opportunity to redesign PhD level teaching, with the goal of creating an high quality, coherent path to higher education. A reflection on how best to pursue this goal is ongoing. Meanwhile, the Graduate program has been suspended for the academic years 2018-2019 and 2019-2020.

Papers 2020

WP 20/01
The Insurance Role of the Firm

Luigi Guiso - Luigi Pistaferri

WP 20/02
K-Returns to Education

Andreas Fagereng - Luigi Guiso - Martin B. Holm - Luigi Pistaferri

WP 20/03
Sampling properties of the Bayesian posterior mean with an application to WALS estimation

Giuseppe De Luca - Jan R. Magnus - Franco Peracchi

WP 20/04
The Optimal COVID-19 Quarantine and Testing Policies

Facundo Piguillem - Liyan Shi

Grants 2018

The 2018 grants for research projects have been awarded to:

Principal Investigator: Diogo Britto (Università Cattolica del Sacro Cuore)
Project title: “Litigation and Liquidity Constraints: New Evidence from Matched Labor and Court Data
Team members: Breno Sampaio (Federal University of Pernambuco) and Robson Tigre (Federal University of Pernambuco)

Principal Investigator: Tommaso Colussi (Università Cattolica del Sacro Cuore)
Project title: “The Economics and Politics of Government Aid
Team members: Giampaolo Lecce (Northwestern University), Marco Manacorda (Queen Mary University of London) and Massimiliano Gaetano Onorato (University of Bologna)

Principal Investigators: Matilde Giaccherini (University of Rome “Tor Vergata”) and Joanna Kopinska (University of Rome “Tor Vergata”)
Project title: “Vax Populi: Social Costs of Fake-News on Childhood Vaccines

Principal Investigator: Valeria Maggian (Ca' Foscari University of Venice)
Project title: “The Gender Gap and the Italian Mathematical Olympiad
Team members: Natalia Montinari (University of Bologna), Antonio Nicolò (University of Padova and University of Manchester)

Principal Investigator: Roberto Nisticò (University of Naples Federico II)
Project title: “Fertility Decisions and Employment Protection: Evidence from the Italian Jobs Act Reform
Team members: Maria De Paola (University of Calabria) and Vincenzo Scoppa (University of Calabria)

Principal Investigator: Giulia Tura (European University Institute)
Project title: “Matching Refugees: Economic and Socio-Cultural Integration Perspectives
Team members: individual research

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