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Friederike Niepmann's Home Page
I am 4th year PhD student at the Department of Economics at the European University Institute in Florence. My
supervisors at EUI are Giancarlo Corsetti and Russell Cooper.
I conduct research in international trade and investment and international banking. Moreover, I am interested in the topics of international finance and financial intermediation.
My CV can be
downloaded from here (as a pdf-file).
My research statement is available here (as a pdf-file).
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2011
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"Banking across Borders", Job Market Paper.
Abstract: This paper develops and tests a theoretical model that allows for the endogenous decision of banks to engage in international and global banking. International banking, where banks raise capital in the home market and lend it abroad, is driven by differences in factor endowments across countries. In contrast, global banking, where banks intermediate capital locally in the foreign market, arises from differences in country-level bank efficiency. Together, these two driving forces determine the foreign assets and liabilities of a banking sector. The model provides a rationale for the observed rise in global banking relative to international banking. Its key predictions regarding the cross-country pattern of foreign bank asset and liability holdings are strongly supported by the data.
The Online Appendix with additional tables is available here.
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2010
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"Bank Bail-outs, International Linkages and Cooperation"
(with Tim Schmidt-Eisenlohr), CEP Discussion Paper No 1023 (previous version: EUI Working paper ECO 2010/05). Awarded the Klaus-Liebscher-Award 2011 by the Austrian National Bank.
Abstract: Financial institutions are increasingly linked internationally. As a result, financial crisis and government intervention have stronger effects beyond borders.
We provide a model of international contagion allowing for bank bailouts. While
a social planner trades off tax distortions, liquidation losses and intra- and intercountry
income inequality, in the non-cooperative game between governments there
are inefficiencies due to externalities, a lack of burden sharing and free-riding. We show
that, in absence of cooperation, stronger interbank linkages make government interests
diverge, whereas cross-border asset holdings tend to align them. We analyze
different forms of cooperation and their effects on global and national welfare.
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2010
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"Globalization and the spatial concentration of production"
(with Gabriel Felbermayr), The World Economy 33(5): 680-709.
Abstract:
In new trade theory (NTT) models, freer trade tends to increase the spatial concentration
of industrial production across countries. While nations with large home markets and
central geographical location become increasingly attractive business locations, small peripheral
countries gradually deindustrialise. Using data for 26 industries, 20 OECD countries
and 20 years, we investigate the empirical validity of this claim. Separating out the role of
home market size from geographical factors, and using various panel methods, we find robust
evidence in line with theory. Freer trade has indeed magnified the importance of domestic
demand and geographical location for the pattern of industrial production across the globe
and has therefore exacerbated spatial disparities.
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Exercise class for International Trade (taught by Giammario Impulliti at IMT Lucca): The lecture notes on Trade and Finance can be downloaded from here: Part 1 (Trade and Capital Flows), Part 2 (Trade Finance), Part 3 (Trade in Financial Services).
You can view/download my presentation for the Trade & Investment Reading Group from here.
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