Young economists’ poster session
At the ECB Forum, during the “poster session” on the first day of the conference, a pre-selected group of PhD students conducting research in the fields of economics or finance will present the key findings of their research. The young economists’ attendance is expected to add new dimensions to the discourse on topics related to monetary policy, macro-prudential policy or other issues pertaining to the challenges faced by policy-makers in a changing world. Thanks to their age and their exposure to different schools of thought, these young economists will adopt a refreshingly innovative approach in their analyses. The poster session gives the PhD students the opportunity to present their research to top decision-makers from across the globe and they will also be able to attend the rest of the Forum. We are particularly interested in research by students in the areas of monetary policy, macro-prudential policy or topics with a focus on Europe (including, for example, the determinants, socio-economic impact and policy implications of the European sovereign debt crisis; solutions to the problem of youth unemployment in Europe; monetary policy and balance sheet adjustments in the euro area; and the implications of the new European regulatory environment). The students’ travel and accommodation expenses will be covered by the ECB.
The winning paper is “Bank Lending and Relationship Capital” by Yasser Boualam.
The paper integrates a dynamic contracting framework in a general equilibrium model to study bank lending relationships. It shows that a severe deterioration of bank funding costs, as observed in financial crises, leads to the severance of existing lending relationships and only a slow process of creation of new relationships. The model gives important insights as to why recoveries after financial crises can be very slow due to the difficulty for new SMEs to receive external financing.
Ph.D. Candidate, Paris School of Economics & CEPII