Earlier research finds correlation between sentiment and future economic growth, but disagrees on the channel that explains this result.
We shed new light on this issue by exploiting cross-sectional variation in country size and market efficiency. We find that sentiment shocks in the largest advanced economies increase economic activity, but only temporarily and without affecting productivity. Conversely, sentiment shocks in smaller or less advanced economies predict prolonged economic growth and a corresponding increase inproductivity.
The results support the view that sentiment can create economic booms, although only in economies where sentiment and fundamentals are harder to disentangle.
Valerio is Professor of Finance in the School of Business of University College Dublin, where he is the Academic Director of the doctoral program, and associate professor (part-time) of Econometrics at the University of Bari in Italy.
He was previously at Dublin City University, where he was head of Economics, Finance and Entrepreneurship.
He has published over 40 articles in scientific journals such as Management Science, the Journal of Banking and Finance, the Journal of International Money and Finance, the Journal of Business Ethics, Quantitative Finance.
He was the Main Proposer and co-Chair of the H2020 COST Action “Fintech and Artificial Intelligence in Finance”, a large-scale research project on FinTech and Financial Data Science involving a very large network of universities, companies and regulators. He is a founding associate editor of the scientific journal Digital Finance.
He has held visiting and adjunct appointments at the European University Institute, New York University Stern School of Business, Queen's University Belfast, Nazarbayev University Graduate School of Business, Cattolica University at Piacenza.
Il seminario si terrà in inglese.
Informazioni principali: Andi Duqi (andi.duqi@unibo.it).