About

Erik Loualiche is an Associate Professor of Finance at the Carlson School of Management. His research focuses on asset pricing and macroeconomics, particularly the interaction between industrial organization and asset pricing. He also studies the interaction between sources of macroeconomic risk and corporate finance activity. Loualiche has taught applied econometrics, macroeconomics, microeconomics, managerial economics, and investments. He spent the past four years as an assistant professor at the MIT Sloan School of Management. He holds a PhD and MA from Northwestern University and a BSc and MSc from the École Polytechnique in France.

Research topics

• Economics
• Political Science
• Monetary economics
• Business
• Economy
• Public administration
• International economics
• Labour economics
• Economic policy
• Financial economics
• Market economy
• Finance
• Geography
• Macroeconomics
• Public economics
• Engineering

Selected publications

• Archival Version

  Open MIND · 2026-01-01

  otherSenior author

  We study how firms allocate resources across their constituent establishments in response to local economic shocks in the context of the Great Depression. Using establishment-level data from the Census of Manufactures, we find that establishmentsin multi-plant firms are affected by local shocks in the regions in which the other establishments comprising the firm are located. In particular, establishment employment is positively affected by positive shocks to the local supply of credit to other establishments that make up the firm. Our results show the important role of firms in the geographic propagation of local economic shocks

• LPSW2026_JFE_Replication

  Mendeley Data · 2026-04-15

  datasetOpen access1st authorCorresponding

  This code has been tested on MATLAB R2025b and requires the distrib_computing, econometrics, optimization, and statistics toolboxes to be installed. The last part of the code (Part4) requires that R is installed. The R code has been tested on version 4.2.1 (2022-06-23 ucrt). The main script to run the chain of programmes is named LPSW2026_JFE_Replication. To run these mFiles (files ending .m) it is necessary to open them up in the editor and then either hit F5 or mark sections of the code and then run using F9. Tables are created as stand-alone texFiles (files ending .tex) and are stored in the folder ./Tables/. Figures are printed as stand-alone pdfFiles (files ending .pdf) and are stored in the folder ./Figures/. Intermediate results are stored as matFiles (files ending .mat) in the folder ./_matFiles.

  PublisherDOI

• Version 1

  Open MIND · 2026-01-01

  otherSenior author

  We study how firms allocate resources across their constituent establishments in response to local economic shocks in the context of the Great Depression. Using establishment-level data from the Census of Manufactures, we find that establishmentsin multi-plant firms are affected by local shocks in the regions in which the other establishments comprising the firm are located. In particular, establishment employment is positively affected by positive shocks to the local supply of credit to other establishments that make up the firm. Our results show the important role of firms in the geographic propagation of local economic shocks

• Monetary policy transmission through the exchange rate factor structure

  Journal of Financial Economics · 2026-05-16

  articleOpen access1st authorCorresponding
  PublisherDOI

• Firm Networks in the Great Depression

  The Journal of Economic History · 2025-09-23 · 1 citations

  article1st author

  We study how firms allocate resources across their constituent establishments in response to local economic shocks in the context of the Great Depression. Using establishment-level data from the Census of Manufactures, we find that establishments in multi-plant firms are affected by local shocks in the regions in which the other establishments comprising the firm are located. In particular, establishment employment is positively affected by positive shocks to the local supply of credit to other establishments that make up the firm. Our results show the important role of firms in the geographic propagation of local economic shocks.

  PublisherDOI

• Causal Inference for Asset Pricing

  SSRN Electronic Journal · 2025-01-01 · 5 citations

  preprintOpen accessSenior author
  PublisherDOI

• How Competitive Is the Stock Market? Theory, Evidence from Portfolios, and Implications for the Rise of Passive Investing

  American Economic Review · 2025-02-28 · 29 citations

  articleSenior author

  The conventional wisdom in finance is that competition is fierce among investors: if a group changes its behavior, others adjust their strategies such that nothing happens to prices. We estimate a demand system with flexible strategic responses for institutional investors in the US stock market. When less aggressive traders surround an investor, she adjusts by trading more aggressively. However, this strategic reaction only counteracts two-thirds of the impact of the initial change in behavior. In light of these estimates, the rise in passive investing over the last 20 years has made the demand for individual stocks 11 percent more inelastic. (JEL G11, G14, G23, G41)

  PublisherDOI

• Monetary Policy Transmission through the Exchange Rate Factor Structure

  SSRN Electronic Journal · 2024-01-01 · 1 citations

  articleOpen access
  PublisherDOI

• International trade and the risk in bilateral exchange rates

  Journal of Financial Economics · 2023-09-25 · 23 citations

  articleCorresponding
  PublisherDOI

• Bubbles and the value of innovation

  Journal of Financial Economics · 2022-05-08 · 16 citations

  articleSenior author
  PublisherDOI

Frequent coauthors

• Matthew Plosser

  Federal Reserve Bank of New York

  97 shared

• Jean-Noël Barrot

  70 shared

• Valentin Haddad

  Anderson University - South Carolina

  46 shared

• Julien Sauvagnat

  Bocconi University

  18 shared

• Paul Ho

  Federal Reserve Bank of Richmond

  5 shared

• Alexandre Reggi Pecora

  4 shared

• Dan Green

  3 shared

• Paul Huebner

  Anderson University - South Carolina

  2 shared

Education

• PhD, Economics

  Northwestern University