Francesco Palazzo
Contact information:
Bank of Italy
Financial Stability Directorate
via Nazionale 91, Rome
email: francesco.palazzo@bancaditalia.it
Research interests: Financial Intermediation, Over-the-counter markets.
Working Papers
The 2014 Russia shock and its effects on Italian firms and banks, with S. Federico and G. Marinelli.
NBER working paper N. 31171 (April 2023). R&R at the Journal of International Economics.The effects of loan guarantee coverage on credit additionality: evidence from a Covid-19 public support scheme, with G. Cascarino, R. Gallo and E. Sette. Submitted.
Working paper version titled "Public guarantees and credit additionality during the Covid-19 pandemic" published on the Bank of Italy woking paper series (April 2022).The features of equity capital increases: evidence from the universe of non-financial companies, with F. Columba, F. Parlapiano and T. Orlando.
Working paper version titled "The features of equity capital increases by Italian corporates" published on the Bank of Italy woking paper series (July 2022).
Work in progress
Covid-19 public guarantees and loan pricing, with F.M. Piersanti.
Beyond the Surface: Examining the Impact of Investors’ Direct and Indirect Securities Holdings on Fund Liquidity Risk , with V. Della Corte, R. Gallo and T. Makinen.
Publications
1. Adverse selection and search congestion in over-the-counter markets, with T. Makinen, forthcoming at the Journal of Monetary Economics.
Full version with Online Appendix. Working paper version titled "The Double Bind of Asymmetric Information in Over-the-Counter Markets" published on the Bank of Italy woking paper series (July 2017).
2. The multiple dimensions of bank complexity: Effects on credit risk taking, with G. Marinelli and A. Nobili, Journal of Banking and Finance, 2022, vol. 134.
3. Bank profitability and macroeconomic conditions: are business models different?, with E. Bonaccorsi di Patti, Economic Notes, 2020, vol. 49(2). Working paper version published on the Bank of Italy occasional paper series (June 2018).
4. Information Disclosure and Asymmetric Speed of Learning in Booms and Busts, with M. Zhang, Economics Letters, 2017, vol. 158, pp. 37-40.
5. Search Costs and the Severity of Adverse Selection, Research in Economics, 2017, vol. 71, pp. 171-197.
Working paper version published on the Bank of Italy woking paper series (July 2016).
Publicly available policy papers
CDBC and the banking system, with S. Auer, N. Branzoli, G. Ferrero, A. Ilari and E. Rainone, Bank of Italy Occasional Papers No. 829 (February 2024).
The Covid-19 pandemic and the opacity of firms' and banks' balance sheets, with L. Carpinelli and R. Gallo, Bank of Italy Note Covid-19 (June 2020).
Unintended effects of loan guarantees during the Covid-19 crisis, with G. Gobbi and A. Segura, Vox eBook Chapters, Europe in the Time of Covid-19, ed. 1, vol. 1, ch. 1, pp. 104-108, Centre for Economic Policy Research. Also featured on Vox.EU. Available in Italian as Bank of Italy Note Covid-19 (April 2020).
A note on the effects of residential property price growth on bank profitability, with R. Gallo, Bank of Italy Notes on Financial Stability and Supervision N. 17 (December 2019).
Older projects
1. Loss sharing schemes and moral hazard in banking. Last draft (January 2019).
Working paper version titled "Peer Monitoring via Loss Mutualization" published on the Bank of Italy woking paper series (October 2016).
Last update: March 2024.