A striking feature of the ongoing COVID-19 crisis is the boom in house prices. Economists are debating on the origins of such a spike. Based on his recent publication coauthored with Boston College Professor Ryan Chahrour, HEC Paris Professor Gaballo explains how housing prices generates waves of optimism and pessimism causing sizeable fluctuations in the business cycle. A spike in housing prices can then effectively fuel the optimism needed to trigger a quick, persistent recovery of the US economy.
The 2020 Nobel Prize in Economics recognized Paul Milgrom and Robert Wilson of Stanford University for their research on auctions. In this interview, Jean-Edouard Colliard, Associate Professor of Finance at HEC Paris and author of "Les Prix Nobel d’Economie", explains their research, and its role in the economy, society, and the perception of economists.
HEC Paris Ph.D. student Fan Wang unveiled a new definition of ambiguity attitude during the latest D-TEA conference on decision making, organized by HEC Paris Professor Itzhak Gilboa. This was acknowledged and congratulated by decision-theory expert Peter Wakker. In this interview, Mr Wang explains what does he brings both to the field of decision sciences and to practice.
Uncertainty is an invisible trap, set to blind our capacity to avoid nonsense and create actual intelligence. Why invisible? Because uncertainty is powered by what we do not know, which is particularly difficult to become aware of. Anne-Sophie Chaxel, HEC Paris Associate Professor of Marketing and expert in cognitive biases, gives three objectives to keep in mind to embrace uncertainty, along with practice tool boxes to create intelligence.
Fears about economic depression following the pandemic lead most entrepreneurs to restructure their company drastically in order to secure their cash and prevent future liquidity crises. Etienne Krieger, Associate Professor on the Education Track at HEC Paris, explains the main challenges for entrepreneurs when major economic crises occur and their room for manoeuvre in terms of operations and finance. Such crises paradoxically provide a unique opportunity to rethink business models.
On March 14 and 15, France instituted a series of social-distancing measures to combat the outbreak of the Covid-19 virus. How much have these measures reduced the active workforce and how will the economy be affected? HEC Paris associate professor of finance Jean-Noël Barrot and his co-authors conducted a study, based initially on French data, to answer these pressing questions.
The COVID-19 pandemic has led to a very significant use of teleworking in some occupations. But due to different employment composition, telework opportunities are greater in large cities compared to small cities. Social distancing measures therefore may lead to a re-examination of geographical disparities. While teleworking allows many jobs in larger cities to be adapted more easily in the short term to new circumstances, it can also lead to moving some of such jobs away from these cities in the longer term.
On March 18, the European Central Bank launched the Pandemic Emergency Purchase program, a 750-billion-euro aid to support the European economy hit by the Covid-19 health crisis. What does this extraordinary measure mean for the economic governance of the euro area? Analysis by Jean-Edouard Colliard, Associate Professor of Finance at HEC Paris.
In this interview, Gaetano Gaballo, Associate Professor of Economics at HEC Paris and formerly research economist at the European Central Bank (ECB), reminds the role of the ECB, explains its first move in response to the COVID-19 crisis and the markets reaction. Gaballo also shares his analysis on what are the likely challenges that the ECB, and the Eurozone in general, will face in a near future.
The propagation of the coronavirus Covid-19 and the consequent preventive measures and restrictions taken worldwide have had an impact on the global economy. In this interview, Tomasz Michalski, Associate Professor of Economics at HEC Paris, explains the effects of this recession and shares his insights on the policies just launched by France.
