Ph.D. Candidate in Finance and Economics
Ph.D. Candidate in Finance and Economics,
Graduate School of Business
Columbia Business School
3022 Broadway, New York, NY 10027
o.giesecke [@] columbia.edu
Corporate bond markets are a growing source of funding for companies throughout the world. How does a firm's debt structure affect the transmission of monetary policy? This paper sheds light on a new corporate finance mechanism in which monetary policy disproportionately impacts market-financed firms as bonds have higher downside risks relative to bank loans. We present high-frequency evidence consistent with this channel in the euro area: firms with more bonds are more affected by surprise monetary actions than their counterparts. This finding stands in contrast to a standard bank lending channel and suggests a key role for bond markets in monetary transmission.
Presented at: EPR ESSIM 2021, CEPR, Bank of Finland Joint Conference on Monetary Policy Tools and Their Impact on the Macroeconomy, SED 2021, EFA 2020, MFA 2020, 9th MoFiR Workshop on Banking, SFS Cavalcade 2020, CFM London Macro Workshop, University of Cambridge, Columbia Business School, LMU Munich, and NYU Stern.
“Zombie Cities” (with Haaris Mateen)
We document the secular decline in the financial health of cities in the United States; most of the decline originates from the accumulation of legacy obligations, that is, pensions and other post-employment benefits (OPEBs). We find that some cities operate with a negative net position and call them--in analogy to the corporate finance literature--“Zombie Cities”.
For causal identification of the implications of a fiscal shock we utilize quasi-experimental variation in the year of property tax assessments in the state of Connecticut. We find that local governments adjust tax rates to maintain stable tax revenues; there is no change in public employment levels. Our micro data on people's location further allows us to causally estimate the migration elasticity to the change in property tax rates. We find evidence of inter-state migration in response to an increase in property tax rates; and no statistically significant response of intra-state migration. We model the margins of adjustment available to municipalities---taxes and amenities---and their strategic interaction with the endogenous response of residents to assess fiscal sustainability.
Presented at: Columbia University, Columbia Business School, AREUEA National Conference 2021.
RESEARCH PAPERS IN PROGRESS
“COVID-19 Infections Absent Residential Segregation” (with Harrison Hong, Jeffrey Kubik, Haaris Mateen, Neng Wang, Jinqiang Yang)
“Policy Preferences: A Computational Linguistic Approach” (with Anand Chitale, Lea Frermann and José Luis Montiel Olea)