Philippe Bacchetta

Philippe Bacchetta is Professor of Economics at the University of Lausanne. Professor Bacchetta has provided consultancy services to numerous central banks around the world and has been a visiting scholar at the International Monetary Fund on several occasions.

Expertise

Professor Bacchetta is studying the impact of market frictions on investors holding a global equity portfolio. Theory predicts that market frictions lead to more gradual portfolio adjustments to shocks and weaker portfolio responses to changes in expected excess returns. Empirical results, based on data covering more than 40 countries during more than 30 years, show that these predictions are consistent with a broad set of evidence related to portfolios and equity prices, as well as to excess returns for intermediate levels of friction. And that such evidence includes portfolio inertia, significant financial shocks, and asset price momentum and reversal. Professor Bacchetta actively participates in SFI Knowledge Exchange activities that focus on central bank policies, low interest rates, and global capital flows.