Research
PUBBLICATIONS
1. Agenor, P. R., Flamini, A. "Institutional Mandates for Macroeconomic and Financial Stability" Journal of Financial Stability, DOI 10.1016/j.jfs.2022.101063
Abstract: The performance of alternative institutional mandates in achieving macroeconomic and financial stability is studied in a model with financial frictions and reserve requirements as the main instrument of macro prudential regulation. The analysis shows that under a policy loss evaluation approach, coordination leads to a substantial gain in stability in response to various shocks, with the policy interest rate and the required reserve ratio exhibiting a high degree of complementarity. The latter is also more efficient than the former in promoting financial stability. In addition, it is optimal to delegate the financial stability goal also to the monetary authority when the financial regulator only operates a credit-based reserve requirements rule. These results hold under a utility-based welfare evaluation approach as well, as long as the central bank’s institutional mandate focuses mainly on macroeconomic stability. Thus, when the mandate bestowed to policymakers by society accounts for financial stability, evaluating the performance of policy regimes based solely on a welfare criterion could be inappropriate.
2. Caglayan, M., Flamini, A., & Jahanshahi B. "Hindering human capital accumulation: A hidden cost of the silent mafia?" Journal of Economic Behavior & Organization 188, 828-845
Abstract: Since the 1970s, mafias have embedded outside South Italy though employing steadily less violence in establishing their illegal business. Could this rooting and social adaptation in the most productive areas of the country impair human capital accumulation? We pro- vide evidence of a decline in human capital in those areas that were initially wealthy and innovative before mafias established their presence and influence. Our estimates suggest that, for the top 75% of mafia-infiltrated provinces, a reduction by 25 percentiles in their position within the mafia ranking could increase the number of university graduates per capita by 4–21%.
3. Flamini, A., Jahanshahi, B., & Mohaddes, K. (Accepted/In press). “Illegal drugs and public corruption: Crack based evidence from California”. European Journal of Political Economy, [102005]. https://doi.org/10.1016/j.ejpoleco.2021.102005
Abstract: Do illegal drugs foster public corruption? To estimate the causal effect of drugs on public corruption, we adopt the synthetic control method and exploit the fact that crack cocaine markets emerged in California in 1981, before reaching any other U.S. state. Our results show that public corruption more than tripled in California in the first three years following the arrival of crack cocaine. We argue that this resulted from the particular characteristics of illegal drugs: cheap technology and rigid demand, which fosters a convergence of interests between criminals and corrupted public officials resulting in a positive causal impact of illegal drugs on corruption.
Poster: Click here for the poster used at the AEA hosted Poster Session at the 2019 ASSA Annual Meeting.
Interview with the AEA: Alessandro Flamini sat down with the AEA to discuss our paper on how the crack cocaine market fostered public corruption in California during early 1980s. You can watch the interview here.
University of Cambridge News: The paper was highlighted by Insight from the Judge Business School.
Media Coverage: The paper was featured in Tejarat-e Farda and in an interview with Kamiar Mohaddes.
4. Flamini, Alessandro & Milas, Costas, 2015. "Distribution forecast targeting in an open-economy, macroeconomic volatility and financial implications," Journal of Financial Stability, Elsevier, vol. 16(C), pages 89-105.
5. Flamini, Alessandro 2012. "Interest Rate Forecasts in Inflation Targeting Open-Economies," Economia politica, Società editrice il Mulino, issue 3, pages 381-408.
6. Flamini, Alessandro, 2012. "Economic Stability and the Choice of the Target Inflation Index," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 16(2), pages 1-37, April.
7. Flamini, Alessandro & Fracasso, Andrea, 2011. "Household's preferences and monetary policy inertia," Economics Letters, Elsevier, vol. 111(1), pages 64-67, April.
8. Flamini Alessandro & Milas Costas, 2011. "Real-Time Optimal Monetary Policy with Undistinguishable Model Parameters and Shock Processes Uncertainty," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 15(2), pages 1-43, March.
9. Cinzia Alcidi & Alessandro Flamini & Andrea Fracasso, 2011. "Policy Regime Changes, Judgment and Taylor rules in the Greenspan Era," Economica, London School of Economics and Political Science, vol. 78(309), pages 89-107, January.
10. Flamini, Alessandro, 2007. "Inflation targeting and exchange rate pass-through," Journal of International Money and Finance, Elsevier, vol. 26(7), pages 1113-1150, November.
11. Flamini, Alessandro, 2012 “Politica di Stabilizzazione”, Enciclopedia Treccani.
12. Flamini, Alessandro, 2012 “Ritardo”, Enciclopedia Treccani.
LINKS TO WORKING PAPERS AND PUBLICATIONS
My Ideas web page.
LINKS TO SOME WORKING PAPERS
"Illegal Drugs and Public Corruption: Crack Based Evidence from California," with B. Jahanshahi and K. Mohaddes. Cambridge Working Papers in Economics 1847, Faculty of Economics, University of Cambridge.
“Organized Crime and Technology”, with M. Caglayan and B. Jahanshahi. SPRU Working Paper Series
“Institutional Mandates for Macroeconomic and Financial Stability”, with P. R. Agenor. Centre for Growth and Business Cycle Research Discussion Paper Series 231, Economics, The University of Manchester.
WORK IN PROGRESS
1. Agenor, P. R., Flamini, A. "Institutional Mandates for Macroeconomic and Financial Stability" Journal of Financial Stability, DOI 10.1016/j.jfs.2022.101063
Abstract: The performance of alternative institutional mandates in achieving macroeconomic and financial stability is studied in a model with financial frictions and reserve requirements as the main instrument of macro prudential regulation. The analysis shows that under a policy loss evaluation approach, coordination leads to a substantial gain in stability in response to various shocks, with the policy interest rate and the required reserve ratio exhibiting a high degree of complementarity. The latter is also more efficient than the former in promoting financial stability. In addition, it is optimal to delegate the financial stability goal also to the monetary authority when the financial regulator only operates a credit-based reserve requirements rule. These results hold under a utility-based welfare evaluation approach as well, as long as the central bank’s institutional mandate focuses mainly on macroeconomic stability. Thus, when the mandate bestowed to policymakers by society accounts for financial stability, evaluating the performance of policy regimes based solely on a welfare criterion could be inappropriate.
2. Caglayan, M., Flamini, A., & Jahanshahi B. "Hindering human capital accumulation: A hidden cost of the silent mafia?" Journal of Economic Behavior & Organization 188, 828-845
Abstract: Since the 1970s, mafias have embedded outside South Italy though employing steadily less violence in establishing their illegal business. Could this rooting and social adaptation in the most productive areas of the country impair human capital accumulation? We pro- vide evidence of a decline in human capital in those areas that were initially wealthy and innovative before mafias established their presence and influence. Our estimates suggest that, for the top 75% of mafia-infiltrated provinces, a reduction by 25 percentiles in their position within the mafia ranking could increase the number of university graduates per capita by 4–21%.
3. Flamini, A., Jahanshahi, B., & Mohaddes, K. (Accepted/In press). “Illegal drugs and public corruption: Crack based evidence from California”. European Journal of Political Economy, [102005]. https://doi.org/10.1016/j.ejpoleco.2021.102005
Abstract: Do illegal drugs foster public corruption? To estimate the causal effect of drugs on public corruption, we adopt the synthetic control method and exploit the fact that crack cocaine markets emerged in California in 1981, before reaching any other U.S. state. Our results show that public corruption more than tripled in California in the first three years following the arrival of crack cocaine. We argue that this resulted from the particular characteristics of illegal drugs: cheap technology and rigid demand, which fosters a convergence of interests between criminals and corrupted public officials resulting in a positive causal impact of illegal drugs on corruption.
Poster: Click here for the poster used at the AEA hosted Poster Session at the 2019 ASSA Annual Meeting.
Interview with the AEA: Alessandro Flamini sat down with the AEA to discuss our paper on how the crack cocaine market fostered public corruption in California during early 1980s. You can watch the interview here.
University of Cambridge News: The paper was highlighted by Insight from the Judge Business School.
Media Coverage: The paper was featured in Tejarat-e Farda and in an interview with Kamiar Mohaddes.
4. Flamini, Alessandro & Milas, Costas, 2015. "Distribution forecast targeting in an open-economy, macroeconomic volatility and financial implications," Journal of Financial Stability, Elsevier, vol. 16(C), pages 89-105.
5. Flamini, Alessandro 2012. "Interest Rate Forecasts in Inflation Targeting Open-Economies," Economia politica, Società editrice il Mulino, issue 3, pages 381-408.
6. Flamini, Alessandro, 2012. "Economic Stability and the Choice of the Target Inflation Index," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 16(2), pages 1-37, April.
7. Flamini, Alessandro & Fracasso, Andrea, 2011. "Household's preferences and monetary policy inertia," Economics Letters, Elsevier, vol. 111(1), pages 64-67, April.
8. Flamini Alessandro & Milas Costas, 2011. "Real-Time Optimal Monetary Policy with Undistinguishable Model Parameters and Shock Processes Uncertainty," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 15(2), pages 1-43, March.
9. Cinzia Alcidi & Alessandro Flamini & Andrea Fracasso, 2011. "Policy Regime Changes, Judgment and Taylor rules in the Greenspan Era," Economica, London School of Economics and Political Science, vol. 78(309), pages 89-107, January.
10. Flamini, Alessandro, 2007. "Inflation targeting and exchange rate pass-through," Journal of International Money and Finance, Elsevier, vol. 26(7), pages 1113-1150, November.
11. Flamini, Alessandro, 2012 “Politica di Stabilizzazione”, Enciclopedia Treccani.
12. Flamini, Alessandro, 2012 “Ritardo”, Enciclopedia Treccani.
LINKS TO WORKING PAPERS AND PUBLICATIONS
My Ideas web page.
LINKS TO SOME WORKING PAPERS
"Illegal Drugs and Public Corruption: Crack Based Evidence from California," with B. Jahanshahi and K. Mohaddes. Cambridge Working Papers in Economics 1847, Faculty of Economics, University of Cambridge.
“Organized Crime and Technology”, with M. Caglayan and B. Jahanshahi. SPRU Working Paper Series
“Institutional Mandates for Macroeconomic and Financial Stability”, with P. R. Agenor. Centre for Growth and Business Cycle Research Discussion Paper Series 231, Economics, The University of Manchester.
WORK IN PROGRESS
- Mafias and the Innovation Capacity of the Territory: Empirical Evidence from North and Central Italy”
- Entrepreneurs and Mafias in an Evolutionary Perspectives
- Heterogeneity in Sectoral Price Stickiness, Aggregate Dynamics and Monetary Policy Pitfalls with Real Shocks.
- Price Stickiness Asymmetry, Industrial Transformation, and the Great Moderation.
- "Transmission Lags and Optimal Monetary Policy," Quaderni di Dipartimento 166, University of Pavia, Department of Economics and Quantitative Methods.