My #COVID19 update for #Italy as of March 25 -- [thread]
It seems that the lockdown measures are finally working and the positive trend of the last few days is confirmed. In the mean time, as always, #StayAtHome#staystrong
1/ New infected +5,210 -- Total infected +3,491 (+6.5%) -- Deaths +683 (10%). All these number confirm the slow down in the growth rate of the virus spread (downward trend visible in the figures)
2/ Growth rate of number of tests increased (+9.3%) and positive-test ratio dropped to 19%.
3/ I find it particularly encouranging the further slow down in the growth rate of total people in ICU (+2.7%). Given the saturation of many hospitals, especially in the North, this is very good news
4/ Numbers at the regional level (for both deaths and number of positive) are good. All regions seem now following same trend. After two weeks or so of lockdown, this seems evidence of its positive effects (i.e, all regions become more similar).
5/ Finally, also in my recap figure, you can now spot the change in the slope of the total cases curve which is starting to resemple a logistic. We might have passed, or be close, to the peak. In mean time, it is important to keep following all safety measures and #StayAtHome
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I am very excited to share my new working paper titled “#Crypto Risk Premia” (with Daniele Massacci, @RubinMirco and Dario Ruzzi). A short 🧵 follows. Please, share it if you like it. Comments are very welcome [1/n]
Before “crypto winter” hit markets at the beginning of 2022, cryptocurrency was getting “boring” as some of the craziness of the earlier times was fading out and institutional investors had started to pour in, allocating a part of their large portfolios to crypto. [2/n]
To inform investment and risk management decisions, and guide portfolio allocation to crypto assets, it is fundamental to i) identify the set of risk factors driving crypto returns and ii) correctly quantify the prices associated with these sources of risk. [3/n]
The paper shows that sudden and large price moves in bitcoin prices (jumps) explain a large portion in the variation in bitcoin returns [2/n]
Study tail-risk in crypto markets is important for at least two reasons 1/ is tail-risk priced similarly to that in equity markets? 2/ to characterize the SDF of the marginal investor and price alternative cryptocurrencies and tokens and do risk-management [3/n]
The narrative of the rollercoaster day for cryptocurrency markets centers around the fears of stricter regulation in China (which might want to push its future CBDC). I shamlessy take the opportunity to advertise some of my prior work [1/n] #EconTwitter ft.com/content/c4c29b…
In Borri and Shakhnov (FRL 2019) we look at a similar big shock when China de facto ordered the closing of cryptocurrency exchanges. [2/n]
The shock had a huge effect on the global share of trading volume that took place on Chinese cryptocurrency exchanges: in a matter of months it went from 90% to less than 1% (caveat: part of it could have been wash trading) [3/n]
Our paper is motivated by recent work by @HannoLustig et al. (AER 2019) who found that currency carry trade strategies with T-bonds are different from those with T-bills because local currency term premia offset currency premia 2/n
Results in Lustig et al. (AER 2019) are for advanced economies with no/low default risk and imply that the volatility of the permanent component of investors’ SDF must be equalized across countries 3/n
We focus on Italy -- one of the first country struck by #COVIDー19 -- where the lockdown design offers a source of exogenous variation in the intensity of the lockdown at a granular level 2/n
In the second (economic) lockdown (March 22) the Italian government defined a detailed list of essential economic activities. All other activities were either suspended or allowed to operate only remotely 3/n
I am very happy to share that my paper "Optimal Taxation with Home Ownership and Wealth Inequality" with Pietro Reichlin has been now accepted for publication at the @RevEconDyn [1/n] #EconTwitter
In the paper we consider optimal taxation in a model with wealth-poor and wealth-rich households, where wealth derives from business capital and home ownership, and investigate the consequences of a rising wealth inequality at steady state on these tax rates [2/n]
We find that the optimal tax structure includes some taxation of labor, zero taxation of financial and business capital, and critically a housing wealth tax on the wealth-rich households and a housing subsidy on the wealth-poor households [3/n]