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I am an Assistant Professor in Finance at Tilburg University.
My research interest are in banking, macro-finance and political economy. I co-organize PolEconFin, an initiative aimed at connecting researchers interested in political economy of finance through an online platform and a CEPR conference series. Email: m.a.rola-janicka@uvt.nl |
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Selected Research
The Good, the Bad and the Missed Boom
joint with Enrico Perotti
Some credit booms result in financial crises. While excessive risk taking is a plausible cause, many investors do not anticipate increasing risk. We show that credit booms may be misunderstood as productivity-driven, due to opaque bank assets which disguise risk incentives. Balanced funding relative to productive prospects can sustain prudent lending (good boom), while funding imbalances may induce high risk exposure and boost asset prices (bad boom), or lead to asset under-pricing and insufficient lending (missed boom). Rational agents drawing inference from prices make mistakes that can amplify the effect of funding imbalances and propagate risk.
Accepted at Review of Financial Studies
Accepted at Review of Financial Studies
The Political Economy of Prudential Regulation
This paper introduces a voting model into a framework with negative borrowing externalities to study voter preferences for prudential regulation. While voting, agents account for the general equilibrium impact of prudential policy on future asset prices and consequently, their access to credit. They thus support a universal limit on current debt. Curbing over-borrowing restricts future declines in asset prices, distributing wealth from high- to low-income borrowers, so the former prefer lax regulation. Political imperfections, such as exemptions of politically connected borrowers, distort the marginal value of regulation. This leads connected borrowers to support excessively strict policy and other agents to vote for overly lax debt limits. If connections and income are correlated, political imperfections may reverse the policy preferences of high- and low-income borrowers.
2020 Best Job Market Paper in Finance Theory
2020 Best Job Market Paper in Finance Theory