Working Papers:

Abstract: Economic Theory predicts that when actuarially fair insurances are not availables, riskaverse utility-maximizing agents have to bear losses, which try to minimize by adjusting good’s prices. One important type of insurance concerns “natural hazards”: the insurance against natural events that occurs with some predictability, and that have the power to damage the owner’s property. In this paper, we exploit the fixed premium differential between public and private insurance systems in Switzerland to understand the differential impact of natural risks on the real estate market. To do so, we first create a model of housing choice and characterize the equilibrium house prices according to the type of insurance premium. Using a geo-coded dataset of house prices and characteristics and a dataset of geo-coded natural hazards over a period of 19 years, we validate our model by testing the hypothesis that in cantons offering an actuarially unfair premium (private insurance providers) we observe a bigger negative impact of risk on house prices under the assumption that public cantons offer an actuarially fair premium.



Abstract: This paper investigates the differentiated distributional effects of international trade policies on non-tradable goods (housing) and dwelling decisions, focusing on the residential integration of transnational regional economies. We construct a theoretical model for residential location choices for a transnational economy with integrated residence and labor market but with heterogeneous consumption, housing, and amenities. Then, we associate this model with the experimental case study of the 2015 Swiss Franc (CHF) appreciation, which caused a reduction of the consumption goods’ prices denominated in CHF in the Eurozone (EZ) regions at the Swiss borders. Hence, we find that after the shock, Swiss and Italian border Municipalities experienced, respectively, a decrease and increase in housing prices due to the residential relocation of EZ residents from the former to the latter. We provide an empirical transnational Bid-Rent model that effectively describes this mechanism. These results suggest that macroeconomic policies might cause discriminating regional housing effects within a nation driven by the residential integration in a transnational economy.


Abstract: A negative life event such as a close relative’s loss may deteriorate mental health. These mental health shocks are often treated with benzodiazepines. While these drugs are effective in the short run, they may have adverse side effects in the long run and lead to addiction. In this paper, we evaluate the labour market and health consequences of a benzodiazepine treatment after the loss of a close relative, by comparing patients with high-prescribing and low-prescribing doctors. We link Dutch general practitioners (GPs) records of 1.2 million patients to other administrative data on the labour market, health outcomes and demographic characteristics. Among these patients, we identify around 100’000 individuals who lost a close relative (a spouse, a child, a parent or a sibling) between 2009-2020. To identify the effect of the benzodiazepine treatment at their loss, we estimate the propensity to prescribe benzodiazepines, and we evaluate the effect of this propensity in an event study framework. We find a gradual increase over all years in health insurance expenditures for patients assigned to high propensity GPs, peaking at 500 euros difference in the long run. On the labour market, we find no effect on the probability of having an income, but we estimate a significant 1000 euros drop in income at 4 years from the shock, for the high propensity group. Our results suggest that patients of high-prescribing practices suffer long-run effects in both the health and labour market outcomes. We identify two possible channels: the prescription of benzodiazepine per se, which does not address the main diagnosis; and out-of-guidelines prescriptions of benzodiazepine, which increase the potential side effects.