Place of Origin
Mexico City, Mexico
M.Sc., Economics, 2010, UCLA
B.A., Economics, 2004, CIDE (Mexico)
Macroeconomics, Monetary Economics, Industrial Organization, Public Finance
"Bank Competition and the Transmission of Monetary Policy", (2012)
ABSTRACT. This paper investigates the transmission of monetary policy to retail interest rates using a novel transaction-level data set that includes all corporate loans of every commercial bank in Mexico from 2005-2010. Particularly, I analyze the speed and completeness of the pass-through of monetary policy to bank lending rates, and provide evidence on the importance of bank competition to explain heterogeneity in the way banks react to monetary policy impulses. For this purpose, I develop a simple model of the banking firm and test its implications using dynamic panel data methods. I find that: (1) interest rate pass-through is sluggish and incomplete; (2) interest rate pass-through is lower in markets with less bank competition; and (3) the effect of bank competition on interest pass-through is more pronounced in the case of monetary policy easing than in the case of tightening.
"Poverty, Inequality, and the Local Natural Resource Curse", (with N. Loayza and J. Rigolini), (2011)
ABSTRACT. The extent to which local communities benefit from commodity booms has been subject to wide but inconclusive investigations. This paper utilizes variation in mining activity across districts in Peru to investigate the existence of mining spillovers and the effect of government resource windfalls on socioeconomic outcomes. Peru's mining industry grew almost twenty-fold in the last two decades. Despite this remarkable economic achievement and a generous tax sharing scheme of mining companies' corporate income tax to subnational governments, mining is generating strong societal tensions. Using a unique district-level database, we find evidence of a positive effect of mining on household consumption, poverty reduction, and literacy. These effects are however confined to mining districts, and increase inequality. This is, local government mining revenue do not impact socioeconomic outcomes in the absence of a mine within a district's boundaries. This localized effect of mining activity may explain the current discontent.
July 2005 - July 2008: Analyst, Evercore Partners (Protego Asesores)
Alfredo Mier y Teran's Web Page: http://alfredomier.wix.com/personal
Entered program in 2008