Publications
Monetary Policy, Bank Competition and Regional Credit Cycles: Evidence from a Quasi-Natural Experiment  - with Nimrod Segev  (link)
             Journal of Corporate Finance, Vol 64, 101494, October 2020
Federal Reserve Private Information and the Stock Market  - with Aeimit Lakdawala  (link)
           Journal of Banking and Finance, Vol 106, pp 34-49, September 2019

Working Papers
Bank Regulation and Monetary Policy Transmission: Evidence from the U.S. States Liberalization - with Aeimit Lakdawala and Raoul Minetti  (SSRN link)
  • Abstract: This paper studies the impact of geographic banking restrictions on monetary policy transmission. Exploiting the staggered deregulation of U.S. banking from the late 1970s to the early 1990s, we find that interstate deregulation significantly increased the responsiveness of bank lending to monetary shocks. This effect occurred primarily for small and illiquid banks, pointing to a strengthening of the bank lending channel. Changes in bank market structure and loan portfolio composition are unlikely to explain the effect of deregulation. This instead reflects a reduced propensity of small banks affiliated with complex holding companies to insulate borrowers from monetary contractions.
The Deposits Channel Revisited - with Nimrod Segev  (SSRN link)
(Revise and Resubmit at Journal of Applied Econometrics)
  • Abstract: Drechsler, Savov, and Schnabl (2017) present a novel reformulation of the bank lending channel of monetary transmission based on market power in local deposits markets, which they term the deposits channel. In this paper we perform a successful narrow replication. We then further their study by reconciling their results on lending with two strands of related literature. First, recent studies have pointed out the unique dynamics of credit card loans in Community Reinvestment Act loan origination data. When accounting for this heterogeneity, we find some key results are sensitive to the inclusion of credit card banks. This confirms the importance of accounting for credit card loans when using CRA data. Second, we show that inconsistencies with related empirical studies can be explained by differences in market power measure, sample period, and the inclusion of alternative control variables. These results highlight that market power on opposing sides of bank balance sheets can impact monetary transmission through alternative channels.
The International Spillover Effects of US Monetary Policy Uncertainty - with Aeimit Lakdawala and Timothy Moreland  (SSRN link)
(Revise and Resubmit at Journal of International Economics)
  •  Abstract: An extensive literature studies the international transmission of US monetary policy surprises (shifts in expected path of the policy rate). In this paper we show that changes in uncertainty around the expected path constitute an important additional dimension of spillover effects to global bond yields. In advanced countries, it is the term premium component of yields that responds to uncertainty. We find that this can be explained by an international portfolio balance mechanism. In contrast, for emerging countries it is the expected component of yields that reacts to uncertainty. This can be rationalized from a flight to safety channel. We find heterogeneity in the country-level response to uncertainty only in emerging economies and it is driven by the degree of financial openness. Finally, equity markets in both advanced and emerging countries also respond to US monetary policy uncertainty, but only since the financial crisis.
Financial Liberalization and Credit Reallocation - with Ana Maria Herrera, Marek Kolar, and Raoul Minetti (PDF)
  • Employing the methodology put forward by Davis and Haltiwanger (1992) for the measurement of job reallocation, we construct measures of credit reallocation across firms in the U.S. states. We then exploit the staggered deregulation of the credit markets of the states of the eighties as a natural experiment to identify an exogenous shock to the process of credit reallocation. The analysis reveals that the credit market deregulation intensified inter-firm credit reallocation in the states, while leaving aggregate credit growth essentially unaltered. In turn, the increased dynamism in credit reallocation allowed to systematically transfer funds to more productive firms in a more flexible way.

Works in Progress
Small Business Lending and Household Credit Shocks - with Berrak Bahadir and Inci Gumus
Monetary Spillovers to Developing Financial Markets: Evidence from Bangladesh - with Rashed Sardar