I am Lecturer (Assistant Professor) in Economics at Newcastle University, NUBS. My research interests are in macroeconomics with a specific emphasis on the interactions between fiscal policy and monetary policy. I am currently interested in modelling the financing of climate change policies. I obtained my PhD in Economics in January 2024 from the Free University of Bozen-Bolzano. During my doctoral studies, I worked as an intern in the Monetary Policy and Analysis Division at the Deutsche Bundesbank.
Please find here my CV.
Working Papers
Fiscal Stimuli: Monetary versus Fiscal Financing (with Marco Lorusso and Francesco Ravazzolo)
In this paper, we investigate the use of money supply issued by the central bank to support expansionary fiscal interventions. We develop and estimate a New Keynesian model using US data for the sample 1960Q1 - 2019Q4. We conduct a quantitative counterfactual analysis to assess the effects of a fiscal stimulus that does not result in an increase in public debt, as it is financed by money supply. Our impulse response analysis indicates that both increases in government spending and transfers that are monetary financed have positive effects on private consumption, investment and output. However, the expansionary impact of monetary-financed fiscal shocks comes at a cost: an increase in inflation. Our sub-sample analysis indicates that monetary-financed fiscal stimuli would have had a greater positive impact on the economy during the Great Moderation. Lastly, we find that as the debt burden increases, the positive effects of a monetary-financed fiscal stimulus diminish.
Presented at: The 2024 RCEA International Conference (May 2024), 10th ICEEE Congress (May 2023) , 16th Dynare Conference, 2nd Dolomiti Macro Meetings, IAAE Annual Conference, 28th CEF Conference (June - July 2022), the ICEA Taxation and Innovation Conference (online, February 2022), SIdE Summer School (July 2021).
BEMPS Working Paper
Unraveling the Heterogeneous Impact of Redistributive Policies on Labor Supply (with Aicha Kharazi and Francesco Ravazzolo)
In this paper, we provide new evidence on the inequalities arising from income taxation in the US, and their heterogeneous impact on labor supply. First, we develop a Real Business Cycle (RBC) model with two agents, which is solved using perturbation methods. Through impulse response functions, we show that an income tax shock affects negatively and differently the two agents, suggesting a heterogeneous response of labor supply. To validate these findings, we provide microeconomic evidence from the US Current Population Survey. Our analysis reveals that the bottom 10% of the income distribution pays a higher tax percentage relative to their earned income compared to the top 10%. Additionally, and in contrast with results from our theoretical model, we find that the labor supply elasticity with respect to the income tax is positive. Finally, local projection evidence supports the empirical results, suggesting that labor supply responds positively to the income tax.
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Work in progress
Public Debt-to-GDP and Velocity of Money Supply (with Stefan Franz Schubert)
This work explores the relationship between the public debt-to-GDP ratio and the velocity of money zero maturity (MZM) in the United States. Our findings suggest that the public debt-to-GDP ratio Granger causes velocity from 1959Q1 to 2019Q4. To further investigate these findings, we analyse this relationship through the lens of a New Keynesian model with fiscal policy shocks. This analysis contributes to literature by introducing a determinant of money velocity, offering insights into the transmission mechanisms of fiscal policy shocks.
Presented at: 16th UNITO-Collegio Carlo Alberto PhD Workshop in Economics (November 2023) and Expectations in Dynamic Macroeconomic Models @TU Wien (poster session, August 2023).