Empirical Methods and Sustainable Finance Florence School of Transnational Governance

Overview

The sessions cover the unique role of banks in ensuring the stability and sustainability of the banking system, the transmission of monetary policy, and the impacts of banking and environmental regulations. Additionally, the course examines the role of collateral in supporting safe lending practices and sustainable banking, as well as ways to promote sustainable lending by banks to households and credit-constrained firms. 

The Empirical Methods and Sustainable Finance program from Florence School of Transnational Governance also features a hands-on session during which participants will have the opportunity to dive deeper into the empirical methods, using statistical software to apply quantitative techniques covered in the class.

Learning objectives

• Provide an overview of methods for evaluating regulatory changes and investigating other sustainability-related topics.
• Introduce participants to matching and difference-in-difference methodologies, applied to critically assess the features of sustainable credit markets and the impact of local climate policies.
• Explain key aspects of panel estimation, including saturation and fixed effects methods, used to analyse the relationship between monetary policy, risk-taking behavior, and climate risks.
• Acquaint participants with instrumentation strategies and their application to topics such as climate risk, the real estate market, and new business formation.
• Strengthen participants’ practical knowledge through a series of replication exercises.