Rate My Professor Natalia Bailey

Associate Professor Natalia Bailey serves in the Department of Econometrics and Business Statistics at Monash University, part of the Faculty of Business and Economics. She obtained her PhD from Queen Mary, University of London. Bailey's career trajectory encompasses academic and industry roles. Prior to academia, she worked for eight years as an economist and strategist in London's private sector at Citigroup, Lehman Brothers, and Merrill Lynch. She then held a Research Associate position at the University of Cambridge and served as a Lecturer at Queen Mary, University of London. In 2017, she joined Monash University as a Senior Lecturer, advancing to Associate Professor. She teaches courses such as Advanced Financial Econometrics (ETX4460) and supervises Honours research projects (ETC4860/ETC5860), serving as Chief Examiner for these units.

Bailey's research specializations include cross-sectional dependence, factor models, spatial models, and analysis of weak and strong cross-sectional dependence in large panels, applied to finance and macroeconomics. Her publications appear in prominent journals including Journal of Applied Econometrics, Econometric Reviews, and Applied Economics. Key works are 'Measurement of factor strength: theory and practice' (Bailey, Kapetanios, & Pesaran, 2021, Journal of Applied Econometrics), 'Estimation and inference for spatial models with heterogeneous coefficients: an application to US house prices' (Aquaro, Bailey, & Pesaran, 2021, Journal of Applied Econometrics), 'A RMT-based LM test for error cross-sectional independence in large heterogeneous panel data models' (Bailey, Jiang, & Yao, 2022, Econometric Reviews), 'Impact of climate change on agriculture in Australia: an interactive fixed effects model approach' (Bailey, Hochman, Mao, Silvapulle, & Silvapulle, 2025, Applied Economics), 'Exponent of cross-sectional dependence for residuals' (Bailey, Kapetanios, & Pesaran, CESifo Working Paper, 2022), 'Correction to exponent of cross-sectional dependence for residuals' (Bailey, Kapetanios, & Pesaran, 2020, Sankhya B), and 'A two stage approach to spatiotemporal analysis with strong and weak cross-sectional dependence' (Bailey, Holly, & Pesaran, 2014). As Chief Investigator, she led the project 'Big data analytic approach to assessing impacts of harmful temperatures on wheat crops in northern Victoria' (2018-2021), contributing to UN Sustainable Development Goals 2 (Zero Hunger) and 13 (Climate Action). Bailey organized the Australian Spatial Econometrics and Statistics Workshop in 2023 and is a member of the Econometric Society.