Interview with SFI Prof. Garcia-Appendini

Learn more about SFI Prof. Garcia-Appendini, University of St. Gallen, in our interview below
Date04 Dec 2024
CategoryNews

Where did you grow up ?
In Mexico City.


What were your hobbies as a child ?
Roller skating, skipping rope, playing jacks.


Where did you go to University ?
I did my bachelor's in applied mathematics at ITAM (Instituto Tecnologico Autonomo de Mexico).


Where did you do your PhD ? 
Pompeu Fabra University in Barcelona. 


Who was your PhD Advisor ?
 Vicente Cuñat (now at LSE). 


Any anecdote or memory from your time as PhD ?
The first few months of my PhD were very precarious! My partner and I arrived at Barcelona just days before the program began, without secured housing. Finding a flat proved challenging – we even fell victim to a scam, paying for a list of rental properties that turned out to be fake. (I later learned many of my classmates had been duped by the same scheme!).

We eventually settled for a cramped apartment in the heart of Las Ramblas. The place was barely habitable: a bare-bones dwelling with faulty wiring – the electric kitchenette would give away electric shocks now and then – and we even experienced a break-in. Fortunately, I spent little time there, as the intensive coursework phase of the PhD kept me away, buried in assignments and studying.
After an exhausting first trimester, we finally found a much nicer flat near La Sagrada Familia. The move itself became memorable: we had somehow amassed an impressive collection of belongings after only three months, particularly books (including, of course, Mas-Colell's microeconomic theory text). This led to multiple trips on the metro, navigating through crowds during the rush hour with suitcases and shopping bags overflowing with hangers, books, and other stuff. 


What is your main research focus ?
I work on the intersection of banking and corporate finance.


What current research are you really excited about and why ?
I have several exciting research projects underway, but I'm particularly enthusiastic about my work exploring the economic impacts of climate change and the transition to a low-carbon economy. I believe climate change represents humanity's greatest challenge, and it is motivating to contribute to our understanding of how this transformation is already reshaping society.

For example, we know too little about the role of the availability of finance (or high interest rates) on firms’ willingness to invest in cleaner technologies. And the little knowledge we have is limited to large and publicly traded firms, for which data is widely available. In one of my papers, I use data from small firms in Italy to examine whether bank credit supply can influence small firms’ decision to invest in costly technologies that reduce carbon emissions. In work in progress, I focus on Norwegian firms and examine the interest rate sensitivity to climate investments. The rapid evolution of green technologies and changing regulatory and economic situations makes this research particularly dynamic and relevant.


What is the next research problem you plan to work on ?
I plan to continue exploring the bidirectional relationship between climate change and the economy. A key focus of my research will be understanding how climate-related (and standard) regulations shape the transition to a green economy. The research has important policy implications, for example: How can we design regulations that effectively encourage green transition while maintaining economic stability? What are the distributional consequences of these policies? These questions are especially relevant as countries worldwide grapple with implementing ambitious climate policies while managing their economic impacts.


What attracted you to Switzerland, your local university and SFI ?
Few places can match what Switzerland, St Gallen and SFI can offer: Exceptional institutions and infrastructure; economic stability, order, security, and rule of law, networking opportunities spanning academia, policy circles, and industry; a central location in the middle of Europe, breathtaking nature... and delicious cheese!


What languages do you speak ?
Spanish, Italian, English, German; and some French.


Tell us something exciting that happened to you in the last five-ten years.
It's been quite exciting to work in a small central bank (Norges Bank), to experience firsthand what the most pressing policy questions are, and contribute to the most current policy debates by trying to answer these questions. I've particularly enjoyed exchanging views with the people involved in the policymaking, participating in our own group monetary policy discussions which then get reported to the monetary policy committee, and participating in networks involving people from other central banks. From a personal perspective, it has also been exciting to learn about Oslo and Norway and the Norwegian culture. Two highlights in this respect have been learning to cross-country ski (which I thought would be easy since I know how to ski downhill, but is definitely not!), and dipping in the freezing seawater. 


What do you do in your spare time ?
I go for long walks or hikes with my dog, play the piano, read, watch films, and practice yoga. I also enjoy cooking, good food, and good company.


What is your favorite holiday destination ?
I like exploring different places, rather than repeating a holiday destination. Of course, Mexico has several fantastic places where I would go to again without second thoughts (Oaxaca, Puerto Vallarta, San Miguel de Allende, Patzcuaro, Guanajuato...), but I’m very biased obviously. Other destinations that I would be happy to repeat are Japan and the Lofoten Islands. 


What is your favorite song ?
"Across the universe" by the fab four.