My current research examines the effects of risk both at the macroeconomic (or aggregate) level and at the microeconomic (or individual) level. On the macro side, I study risks stemming from financial (in)stability and debt (un)sustainability, and how macroprudential policies address the emergence of systemic risks. Within the latter, risks originating from housing markets are a focal point of interest. I also work on the development of tests to detect bubbles in asset prices. On the micro side, I investigate agents’ behaviour in the presence of risks of different orders (second, third or fourth) and the predictions implied by alternative risky choice models.
I am a co-director of the International Housing Observatory that, in collaboration with the Federal Reserve Bank of Dallas, analyses real estate markets across the world. I am also a co-director of the UK Housing Observatory. The Observatory provides a comprehensive set of information and tools (including a newly developed house price index) to perform real-time monitoring of UK real estate markets at the national and regional level. The research and results generated within the Observatories have attracted the attention of the media such as The Financial Times, The Times, Wall Street Journal, The Independent, i News, Mail (Online), Mirror, Evening Standard, World Finance, Business Insider, Finance Monthly, What Mortgage, and Property Wire.
Working Papers "Macroprudential Policy in the Euro Area" (with A. Fernandez-Gallardo), Accepted for publication at the Journal of Money, Credit and Banking (updated working paper version here). "Higher Order Risk Preferences in the Koszegi-Rabin Expectations-based Model" (with K. Georgalos and D. Peel), R&R at Journal of Economic Behavior and Organization. Work in Progress "Financial Crises and Sovereign Debt Sustainability Risks: Exploring the link" (with A. Fernandez-Gallardo). Federal Reserve Bank of Dallas "Taking the Global Housing Market’s Temperature: Is It Running a Fever (Again)?" (with Enrique Martinez-Garcia, Jarod Coulter, Valerie Grossman, Efthymios Pavlidis, Kostas Vasilopoulos), Dallas Fed Economics Blog, September 28, 2021