Alberto MontagnoliProfessor Alberto Montagnoli presented a new research paper with the title Credit Supply Shocks and Household Leverage: Evidence from the US Bank Deregulation, co-authored with Professor Sarah Brown and Dr Dan Gray at the European Economics Association (EEA) Annual Congress in Cologne on the 29 August 2018.

Research paper abstract
We use a quasi-natural experiment framework provided by the staggered removals of inter-state banking restrictions to identify the effect of increased availability of credit on household finances in the US. Analysing US household panel data, we explore the effects of state level banking deregulation on a range of aspects relating to household balance sheets including debt levels and leverage. Employing a range of panel data techniques to control for potential heterogeneity in the household’s financial situation, we show that deregulation increased both the propensity to hold debt and the amount of debt held. Our results also show an increased level of leverage following the credit supply shock. Furthermore, we find that the deregulation had a more pronounced effect on non-white headed households. Finally, we show how deregulation increased debt and leverage at the middle and the top of the debt and leverage distributions, and had a large effect on non-white headed households at the top 20% of the debt distribution.

Jenny RobertsProfessor Jennifer Roberts has been awarded a Leverhulme Trust International Academic Fellowship for the project ‘Commuting as an economic behaviour in the US and the UK’. This research, is joint with Dr David Cuberes of Clark University (Massachusetts, USA) and combines urban economic theory with applied microeconometrics to improve our understanding of commuting and household location choices. Jennifer is currently in Massachuesetts, USA and will return to Sheffield in January 2019.

Furthermore, Professor Roberts has also joined the Leverhulme Trust Research Awards Advisory Committee. The Leverhulme Trust is one of the largest all-subject providers of research funding in the UK, distributing approximately £80m a year.


Ian Gregory-SmithSecond year economics undergraduate student, Russell Elsdon, will work on the project “Executive Directors’ Biographies” supervised by InstEAD research affiliate Ian Gregory-Smith secured competitive funding from the Sheffield Undergraduate Research Experience (SURE) scheme.

A major gap in the literature on executive compensation concerns the assignment of causality. Does executive pay drive corporate performance, or does corporate performance drive executive pay? Or are both performance and pay are driven by other variables such as human capital? The project will model payments to company directors, the extent to which performance and reward are connected and the accumulation of human capital. The project will undertake a structural approach providing causal estimates relating to executive pay-setting in the UK.


InstEAD research affiliate Steve McIntosh presented his work on the value of apprenticeships to the Edge Foundation and Department for Education Research Review Group on 12 April 2018.


Photo of Prof Andy DickersonInstEAD research affiliates Andy Dickerson and Damon Morris presented their work on the on the Changing Demand for Skills in the UK at the Royal Economic Society Annual Conference on 26-28 March 2018.

Also they presented the same research at the 2nd IZA Labor Statistics Workshop on 26 April 2018.

They find positive and significantly increasing returns to analytical skills during 2002-2016. While the returns to interpersonal skills are lower than to analytical skills, they are also increasing over time, and are significant especially post-2010. The returns to physical skills are significantly negative over the whole period.