Paolo's workplaceForza Napoli Sempre

John C. and Sally S. Morley Professor of Finance

Ross School of Business, University of Michigan
701 Tappan Street, Suite R4434
Ann Arbor, MI 48109-1234
Tel: 734/ 764-9286
Fax: 760/ 268-3746

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Ross School of Business, University of Michigan
Finance Area Chair: 2022-present
John C. and Sally S. Morley Professor of Finance: 2023-present
Professor of Finance (with Tenure): 2018-present
Associate Professor of Finance (with Tenure): 2010-2018
Assistant Professor of Finance: 2003-2010

Universita' Ca' Foscari, Department of Economics
Visiting Scholar: Spring 2019

Stockholm School of Economics, Swedish House of Finance (SHOF)
Hans Dalborg Visiting Professor of Finance: Spring 2013


Journal of Financial Markets
Managing Editor: 2022-present
Co-Editor: 2017-2022
Associate Editor: 2013-2017

Review of Financial Studies
Associate Editor: 2017-2020


Stern School of Business, New York University: MBA (1998), M.Phil. (2002), Ph.D. (2003)
Universita' Commerciale Luigi Bocconi: BA (1994)

Information Economics, International Finance, Market Microstructure


Non-Standard Errors
, with many coauthors Journal of Finance (2024), Forthcoming.
Speculation with Information Disclosure
, with Yifei Wang Journal of Financial and Quantitative Analysis (2024), 59, pp. 956-1002. (internet appendix)
Agency Costs and Strategic Speculation in the U.S. Stock Market
Review of Corporate Finance Studies (2024), 13, pp. 147-190. (internet appendix)
Excess Mortality from COVID-19: A Commentary on the Italian Experience
, with Saverio Stranges International Journal of Public Health (2020), 65, pp. 529-531, https://doi.org/10.1007/s00038-020-01399-y
Government Intervention and Strategic Trading in the U.S. Treasury Market
, with Jennifer Roush and Clara Vega Journal of Financial and Quantitative Analysis (2020), 55, pp. 117-157. (internet appendix)
Government Intervention and Arbitrage
Review of Financial Studies (2018), 31, pp. 3344-3408. (internet appendix)
Strategic Cross-Trading in the U.S. Stock Market
, with Clara Vega Review of Finance (2015), 19, pp. 229-282.
Financial Market Dislocations
Review of Financial Studies (2014), 27, pp. 1868-1914 (Michael J. Brennan RFS Best Paper Runner-Up Award). (The MDI series over 1973-2009 is available on request; more detailed information on and analysis of the ADR subsample are in Pasquariello (2018))
Prospect Theory and Market Quality
Journal of Economic Theory (2014), 149, pp. 276-310. (typos)
On the Price Comovement of U.S. Residential Real Estate Markets
, with Jarl Kallberg and Crocker Liu Real Estate Economics (2014), 42, pp. 71-108.
Central Bank Intervention and the Intraday Process of Price Formation in Currency Markets
Journal of International Money and Finance (2010), 29, pp. 1045-1061.
The On-The-Run Liquidity Phenomenon
, with Clara Vega Journal of Financial Economics (2009), 92, pp. 1-24 (Lead Article).
Does Asymmetric Information Drive Capital Structure Decisions?
, with Sreedhar Bharath and Guojun Wu Review of Financial Studies (2009), 22, pp. 3211-3243. (Further details on the construction of the ASY index can be found in a previous version available at SSRN)
On the Volatility and Comovement of U.S. Financial Markets Around Macroeconomic News Announcements
, with Menachem Brenner and Marti Subrahmanyam Journal of Financial and Quantitative Analysis (2009), 44, pp. 1265-1289 (Lead Article).
The Anatomy of Financial Crises: Evidence from the Emerging ADR Market
Journal of International Economics (2008), 76, pp. 193-207.
Updating Expectations: An Analysis of Post-9/11 Returns
, with Jarl Kallberg and Crocker Liu Journal of Financial Markets (2008), 11, pp. 400-432.
Time-Series and Cross-Sectional Excess Comovement in Stock Indexes
, with Jarl Kallberg Journal of Empirical Finance (2008), 15, pp. 481-502.
Informed and Strategic Order Flow in the Bond Markets
, with Clara Vega Review of Financial Studies (2007), 20, pp. 1975-2019.
Imperfect Competition, Information Heterogeneity, and Financial Contagion
Review of Financial Studies (2007), 20, pp. 391-426. (Further discussion and analysis of the notion of information heterogeneity in the paper can be found here)
Informative Trading or Just Costly Noise? An Analysis of Central Bank Interventions
Journal of Financial Markets (2007), 10, pp. 107-143 (Lead Article). (typos)
An Examination of the Asian Crisis: Regime Shifts in Currency and Equity Markets
, with Jarl Kallberg and Crocker Liu Journal of Business (2005), 78, pp. 169-211.
Regime Shifts in Asian Equity and Real Estate Markets
, with Jarl Kallberg and Crocker Liu Real Estate Economics (2002), 30, pp. 263-291.  
WORKING PAPERS (read more):

Speculation and Liquidity in Stock and Corporate Bond Markets
(2024), with Mirela Sandulescu
Quants, Strategic Speculation, and Financial Market Quality
(2024), with George Malikov
Excess Mortality from COVID-19: Lessons Learned from the Italian Experience
(2020), with Saverio Stranges
Political Uncertainty and Financial Market Quality
(2014), with Christina Zafeiridou
Is There Timing Ability in the Currency Market? Evidence from ADR Issuances
(2011), with Qiaoqiao Zhu  
Nasdaq, S&P 500 update stock lists to reflect today’s market APR-Marketplace, December 18, 2023. (click to listen) Xi meets Brazil's Lula amid calls to shake up Western-led order Nikkei Asia, April 14, 2023. One Month from Silicon Valley Bank’s Collapse: What Now? TRT World Research Centre, April 12, 2023. SVB, Credit Suisse, and contagion: When ignorance isn't bliss The Hill (Op Ed), March 20, 2023. Office Hours: Paolo Pasquariello on Inflation Michigan Alum, Winter 2022-23. Death, taxes and national income identities: A frightening tale for the British pound The Hill (Op Ed), October 6, 2022. Why it's time to start paying with $2 bills CNN.com, September 17, 2022. Flat tax “indifendibile”: farebbe esplodere il deficit pubblico FIRST online (in Italian), September 11, 2022. Is Biden or Bezos right about gas prices? Economists weigh in Fortune, July 8, 2022. Какой могла бы стать российская экономика за 20 лет Voice of America (video, dubbed in Russian), June 22, 2022. Como EUA e Brasil enfrentam alta da gasolina BBC Brasil (in Portuguese), June 22, 2022. The Treasury Department bars Americans from buying Russian stocks The New York Times, June 8, 2022. Se espera que entre los temas presentes esté el aumento en los precios de alimentos y combustibles, así como el cambio climático y los efectos de la pandemia El Mercurio (in Spanish), May 23, 2022. Кому на Руси будет жить хорошо? Voice of America (video, dubbed in Russian), May 23, 2022. Gas prices rapidly increase as conflict overseas persists longer than expected ABC 12 News (interview & video), May 18, 2022. Храните деньги в сберегательной кассе? Voice of America (video, dubbed in Russian), May 6, 2022. Russia-Ukraine war: What to know about sanctions—their effects and effectiveness University of Michigan News, May 3, 2022. Sanções dos EUA pelo mundo têm impacto limitado, mas exemplo efetivo no Irã Fohla de Sao Paulo (in Portuguese), April 14, 2022. Curva de juros dos EUA volta a se inverter e aumenta temor de recessão Agência Estado (in Portuguese), March 30, 2022. For Companies Still Selling in Russia, ‘Essential’ Is a Loose Term The Wall Street Journal, March 22, 2022. Sanções econômicas funcionam? O que a história diz sobre o sucesso dessas medidas BBC Brasil (in Portuguese, French, Spanish), March 20, 2022. Ukraine-Russia crisis: What to know about decisions by global business players as war rages University of Michigan News, March 14, 2022. Michigan companies exit Russia, but Kremlin threatens countermeasures The Detroit News, March 10, 2022. U-M professors and students discuss economic impacts of Russia invading Ukraine Michigan Daily, March 10, 2022. U-M community reacts to invasion of Ukraine, experts weigh in Michigan Daily, March 9, 2022. Michigan gas prices are soaring. Who’s to blame, when will it stabilize? Bridge Michigan, March 8, 2022. What exactly is the SWIFT banking system? APR-Marketplace, March 3, 2022. When risk and uncertainty abound, investors move to government bonds in a “flight to safety” APR-Marketplace, March 3, 2022. (click to listen) Here's how Russia's invasion of Ukraine could impact Michigan's economy ABC-WXYZ Detroit, March 1, 2022. (click to watch) Expect High Prices, Slowed Down Recovery If Ukraine Conflict Continues MIRS News, March 1, 2022. Michigan gas prices are climbing. Experts are now keeping an eye on Russia MLive.com, February 25, 2022. Automakers, Michigan businesses brace for supply chain impacts from Russia sanctions The Detroit News, February 25, 2022. Ukraine-Russia crisis: What to know about the potential fallout for global financial markets University of Michigan News, February 22, 2022. Why the state lottery stayed successful during the pandemic, while other entertainment businesses struggled Michigan Advance, June 1, 2021. Il caso Archegos: perché non è come LTCM Class CNBC (video, in Italian), March 30, 2021. Rocket Companies stock soars 70% on speculative trading, mirroring GameStop rally Detroit Free Press, March 2, 2021. GameStop et Reddit: révolution à Wall Street Pour l'Eco (in French), February 16, 2021. GameStop gamers battle risk in fight against Wall Street Detroit Free Press, January 29, 2021. How to Invest Money: Make Your Money for You CreditDonkey.com, September 30, 2020. Con i mercati sotto pressione non sempre il prezzo e' giusto IlSole24Ore (Op Ed, in Italian, with Marti Subrahmanyan and Davide Tomio), July 26, 2020. India Inc's Rising Cost of External Capital Business Today (Featured Article, with Marti Subrahmanyan and Davide Tomio), July 12, 2020. Money Moves for Recent Grads InvestorPlace, June 16, 2020. Remessas de brasileiros nos EUA caem até 90%, mas podem aliviar auge da crise no Brasil BBC Brasil (in Portuguese), May 4, 2020. U-M experts imagine aspects of life, lessons learned after coronavirus University of Michigan News, April 24, 2020. Nos EUA, pagamento de auxílio emergencial será feito com crédito em conta ou pelo correio O Globo (in Portuguese), March 31, 2020. Financial, economic actions during crisis may be rational, if not ethical University of Michigan News (interview & video), March 26, 2020. Flexibilização é ameaça ao sistema, dizem especialistas Valor Economico (in Portuguese), March 26, 2020. Are U.S. consumers especially suspicious of internationally based banks? WalletHub.com, March 9, 2020. China’s Coronavirus Highlights the Risks of a Changing Oil Industry Investorplace.com, February 11, 2020. Investors show Trump, Xi what they think of their trade war The Hill (Op Ed), May 14, 2019. Will Political Uncertainty Trump Financial Markets? CFO Magazine (Op Ed), September 14, 2016. Brexit Vote Stokes Middle-Market Concern Middle Market Growth, June 22, 2016. Hillary Clinton vs. Donald Trump: here’s how Wall Street sees it U.S. News & World Report, May 2, 2016. Greece's financial crisis won't deter travels, but could impact local biz Crain's Detroit, July 12, 2015. Why the Greek Crisis is Unlike Anything You Saw with Lehman Brothers TheStreet.com, July 10, 2015. Euro-Free Greece: Hyper-Inflation, Shrinking Real Wages and Demand, and Unemployment Newswise.com (Op Ed), July 7, 2015. Can You Still Trust These Economic Indicators? CNBC, January 23, 2015. La saggezza (dubbia) dei mercati finanziari Corriere della Sera (Op Ed, in Italian), September 5, 2011. Perche' tutti vanno all'assalto del keynesismo monetario di Ben Bernanke Il Foglio (in Italian), November 24, 2010. Warren: New Consumer Bureau Will Help Students Michigan Daily, October 27, 2010. 'Flash Crash' Poses Further Uncertainty for Stocks Business Week, May 10, 2010. L'inflazione ai minimi Il Riformista (in Italian), January 6, 2010. Financial Crisis Panel Ross School of Business, October 10, 2008. Crisis has hit home, University of Michigan experts say Ann Arbor News, October 10, 2008. Stock Market Crash: Understanding the Panic Business Week, October 10, 2008. Il "pacchetto Paulson" e la democrazia alle corde NewsItaliaPress (in Italian), September 24, 2008. Tremonti: Speculazione finanziaria? "La peste del secolo" NewsItaliaPress (in Italian), July 15, 2008. Stocks: A Place Called Vertigo Business Week, March 18, 2008. Remembering Black Monday CIO Magazine, October 18, 2007. Lessons from the ’87 Crash Business Week, October 11, 2007. Markets: Keeping the Bears at Bay Business Week, August 10, 2007.  
Lecture 1: Globalization is here to stay Lectures 2 to 24 on LinkedIn  
Facebook: My daily COVID-19 model-based forecasts & commentary for Italy, United States, Sweden, & United Kingdom
Daily coronavirus forecasts

LinkedIn: The revenge of pandemic zombies? LinkedIn: Pandemic zombie ideas are out in force, again LinkedIn: The (measurable) cost of (pandemic) stupidity LinkedIn: Italy wins the Euros ... & the vaccination race LinkedIn: One-liners to the unvaccinated LinkedIn: (Pandemic) politics can kill you LinkedIn: All that glitters is not pandemic gold LinkedIn: What does Juventus have to do with Covid-19 vaccines? Nothing, and that's the point LinkedIn: Excess mortality in Italy in 2020 LinkedIn: Are there moral victories in pandemic fights? LinkedIn: Mr. Draghi, the time to act on the pandemic is now LinkedIn: The U.S. is entering a dark coronavirus winter LinkedIn: A simple model to predict when Italy will enter a national lockdown LinkedIn: Johnson & Trump, brothers in pandemic failure LinkedIn: Teaching in a pandemic LinkedIn: The EU pandemic failure LinkedIn: The U.S. pandemic failure LinkedIn: Poverty, race, violence, and hypocrisy in coronavirus times LinkedIn: The coronavirus-David versus modern society-Goliath LinkedIn: Debt hawks as false prophets in coronavirus times LinkedIn: Deadly zombie ideas in coronavirus times LinkedIn: Short-termism and the coronavirus LinkedIn: The dubious economics of reopening the economy too early LinkedIn: The tragic power of simple narratives and stereotypes LinkedIn: Being ethical or being good against the coronavirus? LinkedIn: Germany's (latest) leadership failure LinkedIn: Governments as deus ex machina dropping money LinkedIn: Some thoughts on the number of COVID-19 deaths in Italy LinkedIn: A (bank) run on toilet paper? LinkedIn: The ECB comes up short (again) LinkedIn: Should governments manipulate stock prices? LinkedIn: Managing (or ignoring) risk in times of coronavirus LinkedIn: Are there winners (and losers) in times of coronavirus? Ross Commentary on Finance: Trying to make (economic) sense of the coronavirus crisis  
Eyes on Europe  
Google Scholar SSRN EconPapers IDEAS LinkedIn  
Third Conference on Sovereign Bond Markets
Fireside Chat between Marti Subrahmanyam and Chairman Paul Volcker Co-Organizers: Paolo Pasquariello and Marti Subrahmanyam, NYU-Stern School of Business, April 2016.  
Paolo Pasquariello parla del mondo della finanza, del sistema accademico italiano e americano e delle crisi economiche e finanziarie globali (in Italian) +39 Podcast, The Italian Consulate in Detroit, Winter 2021. Twenty Questions Dividend, Ross School of Business, Fall 2009.