Paolo's research interests are in the areas of information economics, international finance, and market microstructure. His research analyzes the impact of important features of trading (e.g., price manipulation, information asymmetry and heterogeneity, and imperfect competition among agents) and of human behavior (e.g., short-termism, loss aversion, and risk seeking in losses) on the process of price formation in domestic and international equity, government and corporate bond, currency, and real estate markets. In recent studies, Paolo has examined strategic trading in stock and bond markets, government intervention in currency and bond markets, financial crises and contagion, financial market dislocations, and the relation between firm-level adverse selection and firms' capital structure decisions. His work has been published by Journal of Financial Economics, Review of Financial Studies, Journal of International Economics, Journal of Business, Journal of Financial and Quantitative Analysis, Real Estate Economics, and other finance and economics journals. Paolo has professional experience as a portfolio manager in Italy, as a fixed income analyst for Goldman Sachs, and as a foreign exchange analyst for J.P. Morgan.