Tessiore, Fabio
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Publication The Role of Interlocking Directorates in Historic Bank Crises in France(2020-01-01) Tessiore, FabioBanking crises have never failed to mark the history of countries around the globe as they are key components of any economy. Relative to the other countries of continental Europe, France experienced an early development of its financial institutions which is attributed to its early industrialization. A shift in the nature of banking crises was observed in France around 1895, and the project seeks to study the change in banking networks and its role in the stabilization of the French banking system. France experienced a major credit crisis in 1930-1931. However, the extent and implications of this crisis were never evaluated empirically due to an absence of information and data since there was no banking regulation at the time. Although the big banks were relatively untouched during the crisis, new data from 400 small banks shows the rest of the banking system underwent two waves of panic: one towards the end of 1930 and one towards the end of 1931. The current project seeks to expand on the analysis of the past research on bank crisis using the relatively new ‘interlocking directorates’ technique. Examining interlocking directorates focuses on the relationships between financial banks, insurances, industrial firms, and other sectors in France across metropolitan, colonial, and foreign regions. The rationale of studying interlocking directorates within the French banking system is based on various advantages and disadvantages with asymmetries of information issues.Publication Monetary Policy Shocks and Firm Heterogeneity: A Cross-Country Comparison(2023-01-01) Tessiore, FabioThis paper examines the extent to which monetary policy shock transmission effects differ within foreign countries due to firm heterogeneity. Current research heavily examines monetary policy in the US and a few other advanced economies; however, there is less extensive information regarding other foreign countries. The conceptual question of the paper is whether firms in foreign countries are affected by monetary policy shocks differently compared to firms in the US and to what extent. This paper discusses the effects of monetary policy in a sample of 43-48 countries. One of the most widely used measures of monetary policy shocks utilizes a high-frequency event study approach with the Fed Funds Rate and US interest rate futures; however, this paper constructs shocks based on the predicted residuals of VAR models due to limited financial markets information in other countries. The paper then looks at firm-level data and how monetary policy transmission differs in other countries due to varying levels of firm heterogeneity. This paper’s contribution consists of taking on an international scope and focusing on differences between advanced and emerging market economies. Additionally, it uses an aggregate measure of firm heterogeneity and provides an analysis at the broader country level. Ultimately, the paper seeks to assess the effect of a shock on the economy with more complete information than before. From a firm perspective, knowing how others react to monetary policy decisions and anticipating changes can be beneficial for navigating unexpected economic environments. Additionally, from an investor standpoint, it may be useful when pricing sovereign debt to understand how firms within a country are affected by the central bank. Lastly, the topic is important because it will show aggregate macroeconomic responses in other countries, such as on domestic output, employment, inflation, etc. This will be useful to regulators, policymakers, and academics looking to expand their knowledge of shocks in foreign countries.