Edoardo  Leonardi

Edoardo Leonardi

PhD Candidate in Economics

Department of Economics

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Key Expertise
Macroeconomics, International Economics, International Finance

About me

Edoardo is a PhD job market candidate in the Department of Economics and an affiliate of the Centre for Macroeconomics. Before joining LSE, he was awarded an MSc in Economics and Social Sciences from Università Bocconi in 2017 and a BSc in International Economics, Management and Finance, also from Università Bocconi, in 2014.

Edoardo’s research interests lie in international finance, monetary and fiscal policies, and household heterogeneity. His current projects deal with the business cycle implications of the heterogeneous exposure to the exchange rate through foreign financial asset holdings in small open  economies, and the relevance of fiscal-monetary policy interactions for business cycle stabilisation in both open and closed economy.


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Earnings, consumption and the business cycle: the role of tradable vs. non-tradable

This paper explores the heterogeneity in earnings and consumption behaviour for workers employed in tradable and non-tradable sectors. First, I estimate a standard lifecycle model of workers’ earnings in the two sectors with a perma- nent and a transitory component. I show that workers in the non-tradable sec- tor experience shocks that are twice as volatile than their tradable counterpart. Then, I estimate workers marginal propensity to consume using unemployment as an unanticipated shock to earnings and allowing for a rich heterogeneity of MPCs according to demographics and other worker characteristics. Workers in non-tradable industries have an MPC that is 30% higher, and such difference becomes twice as large when considering exclusively workers in a stricter non- tradable classification including only retail and restaurant. I then build a multi- sector, open-economy, general-equilibrium model with heterogeneous agents subject to idiosyncratic income shocks and incomplete financial market. I use the model to study the implications of such heterogeneity on business cycles following sector-specific shocks, as well as on the long-run behaviour of the economy to a globalization shock that increases openness. 

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Publications and additional papers

Working papers

Monetary-fiscal interaction and the liquidity of government debt (with Dr. Cristiano Cantore) 
[abstract coming soon]

 Heterogeneous agents in a small open economy: the effectiveness of automatic stabilizers
[abstract coming soon]


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Office Address
Department of Economics
London School of Economics and Political Science
Houghton Street, London WC2A 2AE