Employee Profile

Fabio Canova

Professor - Department of Economics

Room number B3I-039
Phone +4746410656
E-mail fabio.canova@bi.no

Area of Expertise

Publications

Scientific publications Other

Canova, Fabio & Pappa, Evita (2024)

The macroeconomic effects of regional structural funds

Journal of the European Economic Association

Canova, Fabio (2024)

FAQ: how do I estimate the output gap?

Economic Journal

Canova, Fabio (2024)

Should we trust cross sectional multiplier estimates?

Journal of applied econometrics, 39(4), s. 1- 18. Doi: 10.1002/jae.3041

I examine the properties of cross-sectional estimators of multipliers, elasticities, or pass-throughs when a conventional spatial macroeconomic specification generates the data. A number of important biases plague standard estimates; the most relevant one occurs when the units display heterogeneous dynamics. Methods that work well in this situation are suggested. An experimental setting shows the magnitude of the biases cross-sectional estimators display. Average estimates of local fiscal multipliers in the US states are compared and contrasted.

Canova, Fabio & Sæterhagen Paulsen, Kenneth (2023)

Symbolic stationarization of dynamic equilibrium models

Journal of Economic Dynamics and Control, 154 Doi: 10.1016/j.jedc.2023.104710

Dynamic equilibrium models are specified to track persistent time series. Thus, unit roots are typically introduced as exogenous driving forces and the optimality conditions adjusted to produce a stationary solution. This adjustment step requires tedious algebra and often leads to algebraic mistakes, especially in complicated models. We propose an algorithm employing differentiation rules that simplifies the step of rendering non-stationary models stationary. It is easy to implement and works when trends are stochastic or deterministic, exogenous or endogenously determined. Three examples illustrate the mechanics and the properties of the approach. A comparison with existing methods is provided (97 words).

Canova, Fabio & Ferroni, Filippo (2022)

Mind the gap: Stylized dynamic facts and structural models

American Economic Journal: Macroeconomics, 14(4), s. 104- 135. Doi: 10.1257/mac.20200054 - Full text in research archive

We study what happens to identified shocks and to dynamic responses when the data generating process features q disturbances but q 1 < q variables are used in an empirical model. Identified shocks are linear combinations of current and past values of all structural disturbances and do not necessarily combine disturbances of the same type. Theory- based restrictions may be insufficient to obtain structural dynamics. We revisit the evidence regarding the transmission of house price and of uncertainty shocks. We provide suggestions on how to compare the dynamics of larger scale DSGEs models with smaller scale VARs. (JEL E12, E13, E23, E31, E43, R31)

Canova, Fabio & Matthes, Christian (2021)

A composite likelihood approach for dynamic structural models

Economic Journal, 131(638), s. 2447- 2477. Doi: 10.1093/ej/ueab004 - Full text in research archive

Canova, Fabio & Matthes, Christian (2021)

Dealing with misspecification in structural macroeconometric models

Quantitative Economics, 12(2), s. 313- 350. Doi: 10.3982/QE1413 - Full text in research archive

We consider a set of potentially misspecified structural models, geometrically combine their likelihood functions, and estimate the parameters using composite methods. In a Monte Carlo study, composite estimators dominate likelihood‐based estimators in mean squared error and composite models are superior to individual models in the Kullback–Leibler sense. We describe Bayesian quasi‐posterior computations and compare our approach to Bayesian model averaging, finite mixture, and robust control procedures. We robustify inference using the composite posterior distribution of the parameters and the pool of models. We provide estimates of the marginal propensity to consume and evaluate the role of technology shocks for output fluctuations.

Canova, Fabio; Ferroni, Filippo & Matthes, Christian (2020)

DETECTING AND ANALYZING THE EFFECTS OF TIME‐VARYING PARAMETERS IN DSGE MODELS

International Economic Review, 61(1), s. 105- 125. Doi: 10.1111/iere.12418 - Full text in research archive

We study how structural parameter variations affect the decision rules and economic inference. We provide diagnostics to detect parameter variations and to ascertain whether they are exogenous or endogenous. A constant parameter model poorly approximates a time‐varying data generating process (DGP), except in a handful of relevant cases. Linear approximations do not produce time‐varying decision rules; higher‐order approximations can do this only if parameter disturbances are treated as decision rule coefficients. Structural responses are time invariant regardless of order of approximation. Adding endogenous variations to the parameter controlling leverage in Gertler and Karadi's model substantially improves the fit of the model.

Altavilla, Carlo; Canova, Fabio & Ciccarelli, Matteo (2019)

Mending the broken link: Heterogeneous bank lending rates and monetary policy pass-through

Journal of Monetary Economics, s. 1- 18. Doi: 10.1016/j.jmoneco.2019.01.001 - Full text in research archive

Canova, Fabio & Sahneh, Mehdi Hamidi (2018)

Are Small-Scale SVARs Useful for Business Cycle Analysis? Revisiting Nonfundamentalness

Journal of the European Economic Association, 16(4), s. 1069- 1093. Doi: 10.1093/jeea/jvx032

Bluwstein, Kristina & Canova, Fabio (2016)

Beggar-thy-neighbor? The international effects of ECB unconventional monetary policy measures

The International Journal of Central Banking, 12(3), s. 69- 120.

Altavilla, Carlo; Canova, Fabio & Ciccarelli, Matteo (2017)

Mending the Broken Link: Heterogeneous Bank Lending and Monetary Policy Pass-through

[Academic lecture]. Recent Developments in Monetary Policy Research.

Academic Degrees
Year	Academic Department	Degree
1992	Brown University, Providence, RI, USA	M.A.
1988	University of Minnesota	Ph.D.
1982	University of Southern California, Los Angeles, CA.,USA	M.A. in Business Economics
1980	University of Modena, Modena, Italy	B.A. in Economics

Work Experience
Year	Employer	Job Title
2015 - Present	BI Norwegian Business School	Professor
2013 - Present	European University Institute, Florence, Italy	Pierre Werner Chair in Monetary Union
2008 - Present	Budapest School for Central Banking Studies, Hungary	Director
2012 - 2015	European University Institute, Florence, Italy	Professor of Econometrics
2010 - 2012	CREMed, Barcelona, Spain	Associate researcher
2005 - 2012	Universitat Pompeu Fabra, Barcelona, Spain	ICREA Research Professor
2005 - 2012	CREI, Barcelona, Spain	Associate Research
2008 - 2008	University of Bern, Bern, Switzerland	Chair in Macroeconomics
2003 - 2005	Igier-Bocconi, Milan, Italy	Research Professor
1997 - 2003	Universitat Pompeu Fabra, Barcelona, Spain	Professor
1996 - 2002	University of Southampton, United Kingdom	Part-Time Professor
1995 - 1999	Università di Modena, Italy	Professor
1994 - 1997	Universitat Pompeu Fabra, Barcelona, Spain	Visiting Professor
1994 - 1995	University of Catania, Italy	Professor
1991 - 1994	Brown University, USA	Associate Professor
1991 - 1993	European University Institute, Italy	Associate Professor
1990 - 1991	University of Rochester, USA	Visiting Assistant Professor
1987 - 1990	Brown University, USA	Assistant Professor