Ester Faia

Goethe University Frankfurt
Theodor W. Adorno Platz 3
Frankfurt am Main, 60323

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliations: Goethe University Frankfurt and CEPR

NBER Working Papers and Publications

May 2020Social Interactions in Pandemics: Fear, Altruism, and Reciprocity
with Laura Alfaro, Nora Lamersdorf, Farzad Saidi: w27134
In SIR models, infection rates are typically exogenous, whereas individuals adjust their behavior in reality. City-level data across the globe suggest that mobility falls in response to fear, proxied by Google searches. Incorporating experimentally validated measures of social preferences at the regional level, we find that stringency measures (conversely their lifting) matter less when individuals are more patient and altruistic, or exhibit less negative reciprocity. To account for these findings, we extend homogeneous and networked SIR models so as to endogenize agents' social-activity intensity. We derive the social planner's problem and draw implications on the optimality of targeted lockdown policies.
April 2020Elusive Safety: The New Geography of Capital Flows and Risk
with Laura Alfaro, Ruth A. Judson, Tim Schmidt-Eisenlohr: w27048
Using a unique confidential data set with industry-level disaggregation of U.S. cross-border securities claims and liabilities, we find that the growing U.S. securities are also increasingly intermediated by tax haven financial centers (THFC) and by less regulated funds. These securities are risky and respond to tax rates and regulation, suggesting tax avoidance and regulatory arbitrage. Issuers are mostly intangible-intensive multinationals, and investors require a high Sharpe ratio, suggesting search for yield. In contrast, safe Treasuries are mainly held by the foreign official sector and increased with quantitative easing policies. Facts on private securities are rationalized through a model where multinationals with heterogeneous default probabilities endogenously choose to shift profits an...
June 2018Foreign Expansion, Competition and Bank Risk
with Sebastien Laffitte, Gianmarco Ottaviano
in NBER International Seminar on Macroeconomics 2018, Jordi Galí and Kenneth West, organizers
March 2010Globalization, Pass-Through and Inflation Dynamic
with Pierpaolo Benigno: w15842
An important aspect of the globalization process is the increase in interdependence among countries through the deepening of trade linkages. This process should increase competition in each destination market and change the pricing behavior of firms. We present an extension of Dornbusch (1987)'s model to analyze the extent to which globalization, interpreted as an increase in the number of foreign products in each destination market, modifies the slope and the position of the New-Keynesian aggregate-supply equation and, at the same time, affects the degree of exchange-rate pass-through. We provide empirical evidence that supports the results of our model.

Published: Pierpaolo Benigno & Ester Faia, 2016. "Globalization, Pass-Through, and Inflation Dynamics," International Journal of Central Banking, International Journal of Central Banking, vol. 12(4), pages 263-306, December. citation courtesy of

NBER Videos

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email:

Contact Us