
Dr. Edoardo Palombo
Ph.D. in ECONOMICS
Macroeconomist with special focus on Firm Dynamics, Heterogeneous Agent Models and Endogenous Growth Theory.
Email: e.palombo@qmul.ac.uk
LinkedIn: linkedin.com/in/edoardopalombo
RESEARCH
'UNCERTAINTY, INTANGIBLE CAPITAL & PRODUCTIVITY DYNAMICS' [Job Market Paper]
Click here to view full paper.
Following an unparalleled rise in uncertainty over the Great Recession, the US economy has been experiencing anaemic productivity growth. This paper offers a quantitative study on the link between uncertainty and low productivity growth. Firstly, using micro-level data I show that uncertainty accounts for half of the drop in intangible capital stock during the Great Recession. Secondly, to investigate the effect of uncertainty on productivity growth dynamics, I present a novel general equilibrium endogenous growth model with heterogeneous firms that undertake intangible capital investment subject to non-convex costs and time-varying uncertainty. I show that uncertainty can generate slow recoveries and a persistent slowdown in productivity growth when accounting for the empirical discrepancy between the realised and expected changes to the second-moment of fundamentals.
'NEWS UNCERTAINTY IN BREXIT UK' with Renato Faccini
Click here to view full paper.
Watch RES 2019 Presentation (older version)
After the Brexit referendum the behavior of the U.K. economy defied widespread expectations, as it did not exhibit a V-shaped recession, but a slow decline in production. We show that this pattern of propagation arises when uncertainty is about future, rather than current fundamentals, and if the expected duration of uncertainty is sufficiently long. We reach this conclusion within the confines of a heterogeneous firm model featuring news uncertainty, instead of conventional uncertainty shocks. In the quantitative analysis, uncertainty is informed by firm-level probability distributions on the expected effect of Brexit on sales.
'UNCONVENTIONAL MONETARY POLICY, LEVERAGE & DEFAULT DYNAMICS'
Click here to view full paper.
The objective of this paper to investigate the effectiveness of credit easing policy in mitigating the economic fallout from a financial recession using a model that can account for the observed default and leverage dynamics during the financial crisis of 2007. A general equilibrium model is developed with a financial sector and endogenous asset defaults able to account for the observed default and leverage dynamics. Following an adverse aggregate shock, banks deleverage through two channels: (i) higher non-performing loans provisions, and (ii) lower the marginal return of assets. Credit policy is modelled as an expansion of the central bank’s balance sheet countering the disruption in private financial intermediation. Unconventional monetary policy, namely credit easing policy, is shown to be ineffective in mitigating the effects of a financial crisis due to its crowding-out effect on the private asset market. Other non-monetary policy tools such as credit subsidies and their efficacy considered.
REFERENCES
Dr. Renato Faccini
Danmarks Nationalbank
Havnegade 5, 1093 København,
Denmark
+45 2125 9922
Prof. Xavier Mateos-Planas
Queen Mary University
Mile End Road, E1 4NS,
London
+44 20 7882 8841
Dr. Tatsuro Senga
Queen Mary University
Mile End Road, E1 4NS,
London
+44 20 7882 2951
Dr. Guglielmo Volpe
Queen Mary University
Mile End Road, E1 4NS,
London
+44 20 7882 8853
EDUCATION
2015-2019
PHD in ECONOMICS
Expeceted to finish in 2019
2014-2015
MRes in ECONOMICS
with Distinction
2013-2014
MSC in ECONOMICS
with Distinction
2015-2020
Ph.D. in ECONOMICS
Awarded the School of Economics and Finance Ph.D. Scholarship
Queen Mary University of London
2014-2015
M.Res. in ECONOMICS
with Distinction
Queen Mary University of London
2013-2014
2010-2013
M.Sc. in ECONOMICS
with Distinction
Queen Mary University of London
B.Sc. in ECONOMICS & POLITICS
with First Class Honours & Krystyna Renner Prize
Queen Mary University of London
CONFERENCES
EEA-ESEM 2017
ISCTE – University Institute of Lisbon
Royal Economic Society Conference 2018
University of Sussex
EEA-ESEM 2018
University of Cologne
Royal Economic Society Conference 2019
University of Warwick
SKILLS & LANGUAGES
Fortran
Matlab
Visual Studio
Stata
LaTeX
English (Mother Tongue)
Python
Eviews
Excel
Dynare
Italian (Mother Tongue)
Spanish (Beginner)
TEACHING
MACROECONOMICS
Undergraduate 1st Year
Teaching fellow for Tim Lee.
BUSINESS CYCLES
Undergraduate 3rd Year
Teaching fellow for Roman Sustek.
FINANCIAL MARKETS & INSTITUTIONS
Undergraduate 2nd Year
Teaching fellow for Natalia Bailey & Radoslawa Nikolowa.
Awarded the School of Economics and Finance Economics Excellence in Teaching Award
SPREADSHEETS & DATABASES in ECONOMICS and FINANCE
Undergraduate 1st Year
Teaching fellow for Guglielmo Volpe.
ECONOMICS and FINANCE in ACTION
Undergraduate 1st Year
Teaching fellow for Guglielmo Volpe.