CURRICULUM VITAE GIUSEPPE FIORI January 2016 North Carolina State University Poole College of Management Department of Economics 2801 Founders Dr, 4150 Nelson Hall, Box 8110 Raleigh NC 27695 United States Office Phone : +1-919-513-2867 gfiori@ncsu.edu http://www.giuseppefiori.net/ POSITIONS August 2012 present: Assistant Professor at North Carolina State University Poole College of Management September 2010 December 2012: Post-doc at Universidade de São Paulo (Brazil) USP September 2010 June 2012: Research Fellow Fundação Instituto de Pesquisas Econômicas FIPE at Universidade de São Paulo September 2009 September 2010 : Economist at Bank of Italy Business Cycle Unit FIELDS OF INTEREST Macroeconomics, Investment, Monetary Economics and International Economics. EDUCATION 2004-2009: PhD in Economics at Boston College - Boston (USA) with the thesis Essays on Investment, Regulation and Labor Markets Advising Committee: Profs. Matteo Iacoviello Fabio Ghironi, Peter Ireland and Fabio Schiantarelli Fall 2002: Exchange Student at H.E.C. (Hautes Etudes Commerciales) - Montreal (Canada) 1999-2003: Master in Economics and Financial Markets at Bocconi University Milan (Italy), Laurea Summa Cum Laude [Advisor Prof. Carlo Favero]
PUBLICATIONS Market Deregulation and Optimal Monetary Policy [Journal of International Economics, forthcoming, joint with M. Cacciatore and F. Ghironi] The global crisis that began in 2008 has reheated the debate on market regulation as a tool to spur economic performance. In this paper, we address how optimal monetary response to the dynamics triggered by goods and labor market reform and how reforms affect the conduct of monetary policy. We do this in a two-country DSGE model of a monetary union with endogenous product creation and search and matching frictions in the labor market. We calibrate the model to the Euro-Area and find sizable welfare cost of business cycle of about 1% of steady state consumption. Optimal monetary policy calls for 1% trend inflation and deviations from price stability over the cycle that can reduce the cost of fluctuations by 40%. After product and labor market reforms the gains from optimal policy are lower as it is long-run inflation. Market Reforms in Time of Imbalance [Journal of Economic Dynamics and Control, accepted, with M. Cacciatore, F. Ghironi, and R. Duval] We study the consequences of product and labor market reforms in a two-country model with endogenous producer entry and labor market frictions. We focus on the role of business cycle conditions and external constraints at the time of reform implementation (or of a credible commitment to it) in shaping the dynamic effects of such policies. Product market reform is modeled as a reduction in entry costs and takes place in a non-traded sector that produces services used as input in manufacturing production. Labor market reform is modeled as a reduction in firing costs and/or unemployment benefits. We find that business cycle conditions at the time of deregulation significantly affect adjustment. A reduction of firing costs entails larger and more persistent adverse short-run e ects on employment and output when implemented in a recession. By contrast, a reduction in unemployment benefits boosts employment and output by more in a recession compared to normal times. The impact of product market reforms is less sensitive to business cycle conditions. Credible announcements about future reforms induce sizable short-run dynamics, regardless of whether the announcement takes place in normal times or during an economic downturn. Whether the immediate effect is expansionary or contractionary varies across reforms. Finally, lack of access to international lending in the wake of reform can amplify the costs of adjustment. Short-Term Pain for Long-Term Gain: Market Deregulation and Monetary Policy in Small Open Economies [Journal of International Money and Finance, accepted, joint with M. Cacciatore, R. Duval and F. Ghironi] This paper explores the effects of labor and product market reforms in a New Keynesian, small open economy model with labor market frictions and endogenous producer entry. We show that it takes time for reforms to pay off, typically at least a couple of years. This is partly because the benefits materialize through firm entry and increased hiring, both of which are gradual processes, while any reform-driven layoffs are immediate. Some reforms - such as reductions in employment protection - increase unemployment temporarily. Implementing a broad package of labor and product market reforms minimizes transition costs. Importantly, reforms do not have noticeable deflationary effects, suggesting that the inability of monetary policy to deliver large interest rate cuts in their aftermath - either because of the zero bound on policy rates or because of membership in a monetary union - may
not be a relevant obstacle to reform. Alternative simple monetary policy rules do not have a large effect on transition costs. The Macroeconomics Effects of Goods and Labor Deregulation [Review of Economic Dynamics 2016 - vol. 16, pages 1-24, joint with M. Cacciatore] We develop a dynamic stochastic general equilibrium model with endogenous producer entry and labor market frictions to study the macroeconomic effects of deregulating product and labor markets in Europe. Three results emerge. First, deregulation has positive welfare effects, but it can involve shortrun costs, including higher unemployment and lower consumption. Second, the effects of deregulating one market depend on the level of regulation in the other. Policymakers can exploit this interdependence to increase the welfare gains of reforms. Third, deregulation changes the business cycle properties of the economy, amplifying impact responses to shocks but reducing persistence. The Domestic and International Effects of Euro Area Market Reforms [Research in Economics 2015 - vol. 69(4), pages 555-581, joint with M. Cacciatore and F. Ghironi] What will be the internal and external effects of euro area market reforms? Will increased market flexibility in Europe affect incentives for the conduct of macroeconomic policy by European policymakers and their partners? We address these questions in a two-country model with heterogeneous plants, endogenous producer entry, and labor market frictions. We interpret the two countries in our model as the euro area and the United States. We find that market reforms in the euro area will result in increased producer entry and lower unemployment on both sides of the Atlantic, but a worse European external balance, at least for some time. With high market regulation in the euro area, optimal monetary policy requires significant departures from price stability both in the long run and over the business cycle, and a higher inflation target in the euro area than in the U.S. The adjustment to market reforms requires expansionary monetary policy, and more expansion in reforming Europe than in the already flexible U.S. However, deregulation reduces static and dynamic inefficiencies, making price stability more desirable everywhere once the transition is complete. Employment Effects of Product and Labour Market Reforms: Are there Synergies? [Economic Journal 2012 - Royal Economic Society, vol. 122(558), pages F79-F104, 02, joint with G.Nicoletti, S. Scarpetta S. and F. Schiantarelli] This paper investigates the effect of product and labour market liberalization on employment and considers possible interactions between policies and institutions in product and labor markets. Using panel data for OECD countries over the period 1980-2002, we present evidence that product market deregulation is more effective at the margin when labor market regulation is high. The data also suggest that product market deregulation promotes labor market deregulation. Lumpiness, Capital Adjustment Costs and Investment Dynamics [Journal of Monetary Economics 2012 vol. 58(4), pages 371-382] Aggregate investment in the US economy displays a hump-shaped pattern in response to shocks, and the autocorrelation of aggregate investment growth is positive for the first few quarters, turning negative for later quarters. This paper shows that this feature of the data is the natural outcome of a two-sector consumption/investment model designed and calibrated to reproduce plant-level evidence on capital accumulation. The model provides a fully-microfounded benchmark against which to evaluate reduced-form adjustment cost function.
WORKING PAPERS Aging of the Baby-Boomers: Demographics and Propagation of Tax Shocks [joint with D. Ferraro] We investigate the consequences of demographic change for the propagation of exogenous tax changes in the U.S. labor market. We document that the responsiveness of unemployment rates to tax changes largely varies across age groups: the unemployment rate response of the young is nearly twice as large as that of prime-age workers. Such heterogeneity is the channel through which shifts in the age composition of the labor force impact the responsiveness of the aggregate U.S. unemployment rate to tax changes. We then present a model with frictional unemployment and learning about occupational that quantitatively accounts for the estimated aggregate unemployment semi-elasticity to tax cuts. We use the calibrated model to quantify the impact of an aging labor force on the propagation of tax shocks. The results indicate that the aging of the Baby Boom decreases the aggregate unemployment semi-elasticity to tax cuts by approximately 50 percent. Green Policies, Energy Efficiency and Vintage Effects [joint with N. J. Traum] This paper develops a neoclassical growth model with heterogeneous firms to study the effects of environmental policies. The model framework links the distribution of plants to an endogenous capital accumulation and technology adoption decision, making it the first to study both the timing of capital replacement and the endogenous movements in the plant distribution following environmental policy legislation. The main contribution is to demonstrate that the plant distribution should be of interest to policymakers. Short-run qualitative and quantitative responses to a carbon tax enactment vary depending upon whether or not plants vary in emission rates. Heterogeneous emission rates, a feature consistent with plant-level data, induce the economy s average energy efficiency to rise following a carbon tax and imply dynamics that differ from a representative firm model. Policies that initially exempt older establishments and alternative revenue-recycling scenarios alter the short and long run effects as well. TEACHING Instructor at PhD NC State University - Raleigh (USA) for Advanced Macroeconomics Instructor at Master/PhD FEA/USP São Paulo (Brazil) for Advanced Macroeconomics (Spring 2011) Visiting Scholar at Banque de France Paris (France) (February 2010) Instructor at Boston College Boston (USA) for Undergraduate Principles of Macroeconomics (Fall 2007, 2008) Teaching Assistant at Boston College Boston (USA) for Principles of Macroeconomics (Spring 2007, 2008, 2009) and for Principles of Microeconomics (Fall 2006)
REFEREEING ACTIVITY Economic Journal, Journal of Economics Dynamics and Control, Journal of Labor Economics, Review of Development Economics, Journal of Monetary Economics, International Economic Review, Quantitative Economics and Economic Inquiry. PRESENTATIONS 2016: University of North Carolina (USA), Arizona State University (USA). 2015: SNDE Conference Oslo (Norway), SKEMA Antibes (France), CEF Taipei (Taiwan), Triangle Dynamics Workshop Duke University (USA). 2014: Triangle Dynamics Workshop Duke University (USA), Canadian Economic Association-Vancouver (Canada) 2013: International Monetary Fund (USA), University of Delaware (USA), SKEMA, Antibes (France). 2012: University of Bonn (Germany), The Dutch Central Bank (Netherlands), Bank of England (England), North Carolina State University (USA), Cleveland Fed (USA), Bank of Italy (Italy), Collegio Carlo Alberto (Italy), Paris School of Economics (France), SED-2012 (Cyprus), Duke-Triangle Dynamics Workshop Durham (USA), NBER IFM Meetings Boston (USA), ECB/CEPR Labor Market Workshop Frankfurt (Germany). 2011: HEC Montreal Theory and Methods in Macroeconomics Universite de Montreal (Canada). 2010: Banque de France Paris (France), CEPREMAP Paris (France), Universidade of São Paulo USP São Paulo (Brazil), Fundaçao Getulio Vargas (FGV) São Paulo (Brazil), INSPER São Paulo (Brazil). 2009: European Central Bank Frankfurt (Germany), Luiss Rome (Italy), Bank of Italy Rome (Italy), University of Alicante Alicante (Spain), Ecole Polytechnique Lausanne (Switzerland), NOVA Lisboa (Portugal), ESMT Berlin (Germany), IMT Lucca (Italy), University of Pavia Pavia (Italy) 2008: Boston University/Boston College Workshop Boston (USA) 2007: IZA - Fondazione Rodolfo Debenedetti Workshop Measurement of Labor Market Institutions Bonn (Germany), NBER-Political Economy Program Meeting Cambridge (USA) OTHER SKILLS Computing: MatLab, STATA, Eviews, Give Win, Scientific Workplace Languages: Italian [native], English [fluent], French [fluent], Portuguese [fluent], Spanish [basic]
PROFESSIONAL REFERENCES Matteo Iacoviello Prof. Fabio Ghironi Project Manager University of Washington Federal Reserve Board Savery Hall Box 353330 20 th and C St NW Washington DC 20551 Seattle, WA 98195 USA Tel: +1-206-543-5795 Tel: +1-202-452-2426 Fax: +1-206-685-7477 matteo.iacoviello@frb.gov ghiro@uw.edu Prof. Peter Ireland Prof. Fabio Schiantarelli Department of Economics Department of Economics Boston College Boston College Chestnut Hill, MA 02467 USA Chestnut Hill, MA 02467 USA Tel: +1-617-522-3687 Tel: +1-617-522-4512 Fax: +1-617-522-2308 irelandp@bc.edu Fax: +1-617-522-2308 schianta@bc.edu