Nuno Clara, former student of the Undergraduate Program in Economics and the Master in Finance at CATÓLICA-LISBON, won the 2018 Young economists’ session, an award of the European Central Bank.
Over the last five years, the European Central Bank (ECB) has held a annual Forum on Central Banking in Sintra, Portugal. This year was no exception, and the competition for PhD students was again held, where they presented a paper related to the theme chosen by the ECB - Price and Wage Setting in Advanced Economies.
The competition was attended by 11 finalists, invited to participate in the Economic Forum, during which students had the opportunity to present their papers to the members of the jury through posters with the information synthesized. After the jury deliberation, two winners were announced, for the first time in the history of the contest: Nuno Clara (PhD London Business School) and Mishel Ghassibe (PhD University of Oxford).
Nuno, attended the Undergraduate Program in Economics and Master in Finance at CATÓLICA-LISBON, which for the former student had a strong impact on his career.
"My path at CATÓLICA-LISBON laid the foundation of my career as an academic researcher" emphasizes Nuno Clara, who currently attends a PhD from the London Business School.
The paper, entitled “Demand Elasticities, Nominal Rigidities and Asset Prices”, examines the interactions between demand elasticity and nominal rigidities and their implications for firm fundamentals and asset prices. In a theoretical model, Nuno shows that nominal rigidities increase the riskiness of firms facing demands that are more elastic. Using high-frequency Amazon product data Nuno develops a novel method to estimate demand elasticities at the firm level and consistent with the model he finds that firms facing more elastic demands have lower markups and earn an annual return premium of 6.2% compared to firms facing more inelastic demands. He further finds that firms with more elastic demands do not change prices more often and that price synchronization across competitors is very low.
Congratulations Nuno Clara!