• An Experiment on Retail Payments Systems 

      Camera, Gabriele; Casari, Marco; Bortolotti, Stefania (2014-05-05)
      We study the behavioral underpinnings of adopting cash versus electronic payments in retail transactions. A novel theoretical and experimental framework is developed to primarily assess the impact of sellers’ service fees ...
    • Bank and Sovereign Debt Risk Connection 

      Darracq Pariès, Matthieu; Faia, Ester; Rodriguez Palenzuela, Diego (2013-01-01)
      Euro area data show a positive connection between sovereign and bank risk, which increases with banks’ and sovereign long run fragility. We build a macro model with banks subject to moral hazard and liquidity risk (sudden ...
    • Game-Theoretic Foundations of Monetary Equilibrium 

      Camera, Gabriele; Gioffré, Alessandro (2013-09-30)
      Monetary theorists have advanced an intriguing notion: we exchange money to make up for a lack of enforcement, when it is difficult to monitor and sanction opportunistic behaviors. We demonstrate that, in fact, monetary ...
    • Monetary Policy and Risk Taking 

      Angeloni, Ignazio; Faia, Ester; Lo Duca, Marco (2016-05-19)
      We assess the effects of monetary policy on bank risk to verify the existence of a risk-taking channel — monetary expansions inducing banks to assume more risk. We first present VAR evidence confirming that this channel ...
    • Trust in the Monetary Authority 

      Bursian, Dirk; Faia, Ester (2013-07-01)
      Trust in policy makers fluctuates significantly over the cycle and affects the transmission mechanism. Despite this it is absent from the literature. We build a monetary model embedding trust cycles; the latter emerge as ...
    • Trust Me! I am a European Central Banker 

      Bursian, Dirk; Fürth, Sven (2012-06-01)
      In the aftermath of the financial crisis, the ECB has experienced an unprecedented deterioration in the level of trust. This raises the question as to what factors determine trust in central banking. We use a unique ...
    • Two Monetary Models with Alternating Markets 

      Camera, Gabriele; Chien, YiLi (2013-10-28)
      We present a thought-provoking study of two monetary models: the cash-in-advance and the Lagos and Wright (2005) models. We report that the different approach to modeling money — reduced-form vs. explicit role — neither ...