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Eustache Elina
I am an Economist at Banque de France in the service in structural policies (SEPS). I defended my PhD in macroeconomics under the supervision of Tobias Broer and Axelle Ferriere at the Paris School of Economics in January 2026. My resume is available here.
My research focuses on the macroeconomic implications of the rise in labor income inequality on macroeconomic aggregates and stabilization policies.
Research
Joint with Raphaël Huleux
We study how rising permanent labor-income inequality shapes monetary and fiscal transmission in a Heterogeneous-Agent New-Keynesian model with a non-homothetic taste for wealth. Higher inequality increases the share of hand-to-mouth households, raising aggregate MPCs and lowering the effective intertemporal elasticity of substitution. As a result, the direct effect of monetary policy weakens, while the indirect effect strengthen, leading to a larger output response. A higher share of capital gains generated by monetary policy are paid to wealthy households with low MPCs, making monetary policy more regressive. For fiscal policy, higher MPCs raise impact and cumulative multipliers and make deficit-financed expansions more likely to be self-financing. Finally, the fiscal response to a monetary policy shock becomes more important to determine the output response to a change in interest rate.
From Labor Income to Wealth Inequality in the US: Trickle-Down vs. Capital Gains [Appendix en ligne]
Joint with Raphaël Huleux
Higher permanent labor income (PLI) inequality raises savings, since high-PLI households save more. Asset prices must clear markets. We study how price changes impact the distribution of wealth. If savings finance capital, interest rates fall and wages rise, trickling down to poorer households. If they only inflate asset prices, capital gains accrue to the rich while rates and wages stay flat. In a heterogeneous-agent model with non-homothetic wealth preferences and imperfect competition, markups dampen the trickle-down channel and amplify the valuation channel. Our calibration implies PLI inequality raised top 0.1% US wealth by 16% from 1970–2020, versus 3% on average.
The Exit Channel of Monetary Policy
Joint with Leonard Bocquet and Raphaël Huleux
Monetary tightening can generate inefficient firms exits, by exacerbating firm illiquidity constraints. New evidence suggest that, contrary to common wisdom, large productive firms can be affected too. In this paper, we study why monetary tightening can lead to large firms going bankrupt, and explore its macroeconomic implications. To do so, we develop a model of endogenous firm exit with financial frictions and partial irreversibility. Financial frictions imply that only productive firms are able to take on debt, making them highly exposed to interest rate changes, as partial irreversibility makes deleveraging costly. The quality of firm selection can therefore endogenously worsen during monetary tightening episodes, highlighting a potential need for support for large firms in distress.
Teaching
Quantitative Macroeconomics, TA, 2021-2024
PSE, M2 APE with Professors Axelle Ferriere and Tobias Broer
Macroeconomics 2, TA 2024
PSE, M1 APE with Professor Gilles Saint-Paul
Macroeconomics 2, TA 2023
PSE, M1 APE with Professor Daniel Cohen
Macroeconomic Policy, TA 2022
PSE, M1 PPD with Thomas Zuber
Monetary Economics, Lecturer, 2021
ESCP, Grande Ecole, L3
International Economics, Lecturer, 2021
ESCP, Grande Ecole, L3
Microeconomics, TA, 2020-2021
ESCP, BSc Program, L1 with Professor Vanessa Strauss-Kahn
Lecture notes
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