Seminar Invitation | Th. April 6, 2023 | Vasia Panousi | Athens University of Economics and Business

03-04-23 web.xrh 0 comment

Department of Banking and Financial Management  University of Piraeus

Academic Seminar Series

Thursday, April 6th, 2023 / Time: 16:15 – 17:30, Online

Financial integration, idiosyncratic risk and growth

Vasia Panousi 

Athens University of Economics and Business


We investigate the role of financial integration in insuring idiosyncratic investment risk. On the empirical front, using a panel of 79 countries over 1985-2018, we find that an increase in idiosyncratic risk decreases economic growth. However, this decline is 40 percent smaller for more integrated countries, compared to less integrated ones. Furthermore, this mitigating effect of integration is somewhat larger for developing economies. On the theoretical front, we provide a two-country stochastic general-equilibrium model with countercyclical investment risk that explains our empirical findings. The results from an empirically relevant calibration of the theoretical model match the empirical results. This is a joint work with Marlene Koffi (Un. Of Toronto and NBER).


Vasia Panousi is an Associate Professor at the Department of International & European Economic Studies of Athens University of Economics and Business (AUEB). Her areas of expertise include Macroeconomics, Monetary Economics, financial risk-taking and integration of financial markets and problems of inequality in the economy.

She has received several academic awards and her research has been published in leading journals including

Journal of Finance, American Economic Journal: Macroeconomics, Journal of Monetary Economics and Journal of Economic Theory. Professor Panousi received her doctorate in economics from the MIT and Master and Bachelor degrees in Economics from AUEB. Prior to joining the AUEB, she was an Assistant Professor at the Universite de Montreal and a principal economist at Federal Reserve Board.


This seminar will be online on Teams. Click here to attend