
Ertunç Aydoğdu Pronounce: Er-tunch
Welcome! I am currently a Ph.D. candidate in Finance at Tilburg University.
My research focuses on financial intermediation and regulation, household finance, and financial technologies. I mostly combine theoretical frameworks with empirical analysis, developing structural models that link the micro-level behaviors of decision-making entities to the broader impacts of changes in their institutional environments.
I will be on the academic job market during the 2024-25 academic year.
A pdf version of my CV is available at here.
Research Interests
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Empirical industrial organization
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Financial intermediation
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Financial regulation
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Household finance
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Financial technologies
Education
Ph.D. in Finance, 2025
Tilburg University
M.Phil. in Finance, 2019
Tilburg University
M.A. in Economics, 2017
Bogazici University
B.A. in Economics, 2015
Bogazici University
Working Papers
Financial Intermediation and Regulation
"Prudential Regulation for Financial Stability in Economies with Financial Dollarization" (Job Market Paper)
This paper quantifies the effects of allowing banks to issue financial obligations in foreign currency on welfare, financial stability, and the transmission of domestic monetary policy. It constructs a micro-structural model of imperfect competition within the dual-currency banking system of a small open economy, where domestic banks (i) issue loans and deposits in both local and foreign currencies, (ii) obtain foreign currency funding from run-prone non-resident banks, and (iii) participate in the foreign exchange market to hedge their currency exposure, as mandated by regulation. The model features two key aspects. First, domestic banks operate under limited liability and can default endogenously, allowing for multiple equilibria with self-fulfilling bank runs, driven by feedback loops between the financial distress of domestic banks and the supply of foreign currency funding by non-resident banks. Second, each domestic bank fails to internalize the impact of its portfolio choices on the exchange rate, creating a destabilizing mechanism for the entire banking system. The model is estimated using supervisory data from the Central Bank of the Republic of Türkiye, covering the period from 2010 to 2017. The findings reveal significant financial instability in the Turkish banking sector during this period, with fragility averaging 13 percentage points higher in alternative equilibria compared to the equilibrium observed in the data. Counterfactual experiments show that a 5 percent tax on domestic banks’ foreign currency borrowing from non-resident banks reduces their default probability by 12 percent, albeit with some welfare costs for borrowers. Additionally, results indicate that this prudential measure can effectively complement domestic monetary policy, improving its transmission to both loan and deposit markets.
Presentations: IMF-RESMF (DC) • Stevens School of Business (Finance) • CEPR-IO Gathering • Columbia University (Economics) • Columbia Business School (Finance) • EARIE 2024 (Amsterdam) • Tri-City Day-Ahead Workshop on the Future of Financial Intermediation (Frankfurt) • Bank of England (London) • 2024 FMA European Conference (Turin) • Tilburg University (Finance) • Tilburg University (Econometrics)
Work in Progress
Household Finance
"Regulating the Sharing Economy: The Welfare Effects of Airbnb on Housing and Mortgage Markets" with Fabio Braggion, Mauro Mastrogiacomo, Nicola Pavanini, and Yushi Peng.
We examine the welfare effects of Airbnb on housing and mortgage markets in the Netherlands. Exploiting the strict rules imposed on Airbnb rentals in Amsterdam, we first document that these rules have sizable effects on several Airbnb, mortgage and housing market outcomes. Motivated by these empirical findings, we develop a dynamic equilibrium model of housing and mortgage markets to quantify the welfare effects of Airbnb to inform policymakers about the optimal regulation design in this market. We estimate this model relying on the proprietary data sets from the Dutch Central Bank (DNB), the Central Bureau for Statistics (CBS), and the Dutch Association of Real Estate Agents (NVM).
Presentations: De Nederlandsche Bank (Amsterdam) • Tilburg University (Finance) • Tilburg University (Econometrics)
"The Welfare Effects of Price Ceilings: Evidence from the Auto Insurance Market"
Financial Intermediation and Regulation
"Dealer Intermediation and Pricing in the Sterling Repo Market" with Quynh- Anh Vo
Presentations: Bank of England (London)