Work in Progress

"Returns Heterogeneity and Consumption Inequality Over the Life Cycle", with L. Pistaferri. NBER Working Paper No. 32490. May 2024.

A recent literature argues that persistent heterogeneity in wealth returns ("type dependence") as well as a positive association with wealth levels ("scale dependence") play an important role for explaining features of the wealth distribution, especially its extreme concentration at the top. In contrast, traditional models of wealth accumulation emphasize the role of persistent differences in labor earnings. Using panel data from the PSID, we first document that a common unobserved component (which we interpret as the endowment of cognitive and non-cognitive skills of an individual) drives persistent heterogeneity in both wealth returns and labor earnings. We embed these features of the joint wealth return-earnings process in a life-cycle model of consumer behavior and show that ignoring them would dramatically understate average returns for people at the top of the wealth distribution as well as the level and rise of consumption inequality over the life cycle.

"Determinants and Life-Cycle Effects of Survival Ambiguity", with I. Gemmo.

We design a novel survey to elicit individuals' subjective survival ambiguity for a representative sample of the US population. Online experiments and a quasi-experimental design are exploited to study its determinants and effects on saving and portfolio choices. The reduced form evidence will then inform the estimation of a life-cycle model of household behavior in the presence of survival ambiguity and ambiguity aversion. Project funded by SNSF Grant No. 1-008035.

"Financial technology and behavioral barriers to saving for retirement", with M. Filippini and F. Haufler.

We leverage a large scale field experiment (N=60,000) to study what motivates individuals to use a digital pension application designed to help them plan for retirement. Experiment pre-registered in the AEA Registry (Trial ID AEARCTR-0008316).

"Perceived Life Expectancy, Retirement Security and Wealth Inequality", with A. Bommier and I. Gemmo.

We explore the implications of heterogeneity in subjective survival beliefs on wealth inequality estimating a life-cycle model with risk sensitive preferences.

“Financial Literacy, Retirement Saving Starting Age and Retirement Resources”, with F. Haufler.

Adopting an instrumental variable approach, we identify a new mechanism through which financial literacy affects wealth accumulation and retirement resources: the age when individuals actively start saving for retirement.

"Spousal Death and Survivors’ Financial Response", with O. Eryilmaz and I. Gemmo.

We investigate the effects of a spousal mortality shock on survivors’ consumption decisions in the US exploiting an event-study research design.

“Financial Literacy and Social Security”, with M. Padula.

We study the implications of pension reforms on households’ retirement planning behavior, when individuals have limited understanding of the pension rules.

“A Dynamic Model of Bank Behavior under Multiple Regulatory Constraints”, with M. Behn and C. Salleo, ECB Working Paper No. 2233. Jan 2019.

We develop and estimate a dynamic structural model of bank behaviour that provides a credible framework for studying the evolution of bank capital and liquidity structures. We use the estimated model to analyse the effects of changes in regulatory capital and liquidity requirements on bank balance sheets and economic outcomes. Our findings suggest that adjustments in both types of requirements can have an impact on loan supply, while illustrating considerable heterogeneity across banks and over time. Banks' optimal responses and subsequent economic outcomes strongly depend on initial balance sheet conditions, and the simulated dynamics reconcile evidence on short-term reductions in lending with findings suggesting that more resilient institutions are better able to lend in the medium to long term.

Publications

“Digitalization and Retirement Contribution Behavior: Evidence from Administrative Data”, with M. Filippini and F. Haufler, The Review of Financial Studies, forthcoming. WP version

“The Life-Cycle Effects of Pension Reforms: A Structural Approach”, with M. Padula, Journal of the European Economic Association, vol. 22, iss. 1, 2024. 

“The Impact of Policy Awareness: Evidence from Vehicle Choices Response to Fiscal Incentives”, with D. Cerruti and M. Filippini, Journal of Public Economics, 226, 2023. 

“Can Information about Energy Costs Affect Consumers Choices? Evidence from a Field Experiment”, with N. Boogen, M. Filippini and A. Obrist, Journal of Economic Behaviour & Organization, 196, 2022.

“The impact of smart meters on water consumption: Evidence from Canary Islands”, with E. Diaz-Farina, M. Filippini and N. Padron-Fumero, Resource and Energy Economics, 64, 2021.

“Empower the consumer! Energy-related financial literacy and its implications for economic decision making”, with J. Blasch, N. Boogen and Massimo Filippini, Economics of Energy & Environmental Policy, 10, 2021.

"Family Labor Supply and Asset Returns", with L. Pistaferri, European Economic Review, 124, 2020.

“Behavioral anomalies and energy-related individual choices: the role of status quo bias”, with J. Blasch, The Energy Journal, 41, 2020.

Other works

“Funzioni di domanda ed implicazioni di policy: un’applicazione al Reddito di Garanzia”, with N. Zanini, FBK-IRVAPP Working Paper N. 2014-09.

“Disuguaglianze e differenze nell’abitare”, with N. Kulic, in Stranieri e disuguali: le disuguaglianze nei diritti e nelle condizioni di vita degli immigrati, C. Saraceno, N. Sartor, G. Sciortino (eds.), Il Mulino, 2013.