Publications

"Arbitraging Covered Interest Rate Parity Deviations and Bank Lending" [paper] [Online Appendix], Accepted at American Economic Review

 I propose and test a new channel through which bank lending is affected in an emerging markets setting. This channel is that when banks arbitrage covered interest rate parity (CIP) deviations, they need to borrow in a particular currency. In the presence of borrowing frictions, banks shift part of the resources used to lend to households and firms to fund their arbitrage activities. I show this channel exists and affects bank lending.

Working Papers

"Trade Liberalization and Long-Run Local Economic Development: Evidence from the Savoy Great Free Zone" [paper], with Ricardo Piqué

We explore the effect of trade liberalization and long-run local economic development using the case of the Savoy Great Free Zone (GFZ).

"The Role of Family Networks in First-Credit Access",  with Miguel Angel Carpio and Alessandro Tomarchio [paper]

Using a dataset of more than 38 million consumer-bank relationships in 518 districts of Southern Peru, we find that first-time borrowers receive credit and better loan terms from the bank where their families are more central. Our results are explained by informal-oriented banks using family ties as a strategy toward the unbanked. They give first credits to retain the relatives of the recipients as clients, and they also screen first-time borrowers using the credit behavior of their relatives.

"Capital Controls and Risk Misallocation : Evidence From a Natural Experiment" [paper]

I exploit heterogeneity in the strictness of capital controls across Peruvian banks to provide novel evidence of the effect of capital controls on firms' dollar borrowing from banks.