CDSE doctoral candidate Tommaso Gasparini awarded Best PhD Paper Award of the IFABS 2022 Naples Conference

In his paper Tommaso studies how the intensity of competition in the banking sector affects the propagation of uncertainty shocks. He empirically documents that an increase in uncertainty has a stronger negative impact on output growth when banking competition is lower. In fact, as shown in the theoretical model, less competitive banking sectors push borrowers to take more risk exacerbating the negative effects of uncertainty shocks.