Team Projects

In order to approach and answer higly relevant current questions in finance in an adequate and well-balanced way, the SAFE researchers have joined forces for the period of 2016–2018 to set up cross-area teams. Each of these teams consists of several scholars from different areas and disciplines who work together on one overarching question in a number of sub projects. The following team projects started in January 2016 after having been positively evaluated by SAFE's Research Advisory Council as well as by an independent commission of reviewers:


Regulation, Competition and Financial Stability

This project investigates the impact of regulatory design on competition among banks and other financial institutions as well as the resulting consequences for the real sector and financial stability.

Researcher Project Research Area Project Duration Keywords Project ID Publication Count
Rainer Haselmann, Nora Marija Laurinaityte, Vikrant Vig, Christine Zulehner The Effect of Regulation on Banks’ Market Structure Financial Institutions 2016 bank regulation, model based regulation, bank competition 21600 1
Rainer Haselmann, Vikrant Vig, Shiwei Yu, Christine Zulehner Quantification of the Effect of Regulation on Firms’ Demand for Credits and Banks’ Market Power Corporate Finance 2016 bank regulation, model based regulation, bank competition, structural estimation 21600 1
Brigitte Haar, Rainer Haselmann, Katharina Pistor, Vikrant Vig, Christine Zulehner Consequences of Changes in the Banking Structure due to Complex Financial Regulation for Financial Stability and Systemic Risk Financial Institutions, Systemic Risk Lab 2016 bank regulation, competition law, too big to fail, financial stability 21600 1
Pedro Magalhães Batista, Iwona Matylda Grandjean, Brigitte Haar, Casimiro Antonio Nigro, Katharina Pistor Challenges for competition law arising from financial stability Financial Institutions 2016 bank regulation, too big to fail, financial stability, bank regulation, model based regulation, bank competition 21600 1

Systemic Risk and Network Connectivity

Systemic risk is a phenomenon that has moved to the center of attention during the financial crisis. Although it seems intuitively clear what systemic risk is, there is no unique definition in the literature, and there are many ways to measure it. This team project aims to investigate the nature, measurement, and implications of systemic risk from a wide range of perspectives, comprising scholars from different disciplines, including computer science and sociology.

See also: Systemic Risk Lab | Focal Topic "Systemic Risk"

Researcher Project Research Area Project Duration Keywords Project ID Publication Count
Loriana Pelizzon, Tatiana von Landesberger Network representations of interconnections and contagion Financial Markets, Systemic Risk Lab 2016 21610 1
Monica Billio, Massimiliano Caporin, Roberto Panzica, Loriana Pelizzon Network Connectivity, Systemic and Systematic Risk Financial Markets, Systemic Risk Lab 2016 21610 1
Monica Billio, Massimiliano Caporin, Lorenzo Frattarolo, Loriana Pelizzon Network banks exposures and variance spillovers in the euro area Financial Institutions, Systemic Risk Lab 2016 21610 1
Nicole Branger, Patrick Konermann, Christoph Meinerding, Christian Schlag Network Connectivity and General Equilibrium Asset Prices Financial Markets, Systemic Risk Lab 2016 Asset pricing, general equilibrium, recursive preferences, dynamic networks, mutually exciting processes, directed shocks 21610 1
Loriana Pelizzon, Sviataslau Sivagrakau, Matthias Thiemann A Genealogy of Systemic Risk Network Measures adopted by Regulators Financial Institutions, Systemic Risk Lab 2016 21610 1

Complex Markets: Regulation and Incentives in Secondary Market Design

This project deals with the impact of innovations in securities trading (e.g. algorithmic trading and high frequency trading) and in market regulation (e.g. trading interruptions or restrictions on short selling) on market quality. Changes in market structure, namely the increasing fragmentation in different exchange centers but also the rise of over-the-counter trading platforms and free riding structures in banks and big asset managers, are taken into account.


The Impact of Quantitative Easing and the Zero Lower Bound on Asset Prices

To mitigate the negative impact of the financial crisis on economic growth many central banks applied unconventional monetary policy measures such as quantitative easing (QE), which, among other things, caused interest rates to decrease substantially so that the zero lower bound on rates became binding. Although these measures seem to have had some success, there are still a number of open questions with respect to the impact of these policies on asset prices. This project concentrates on dealing and answering these questions.

Researcher Project Research Area Project Duration Keywords Project ID Publication Count
Nicole Branger, Liu Liu, Christian Schlag, Ivan Shaliastovich, Dongho Song Macroeconomic bond risks in the presence of the zero lower bound Financial Markets, Macro Finance 2016 Macrofinance, bond pricing, market expectations, inflation, growth 21630 1
Massimiliano Caporin, Loriana Pelizzon, Alberto Plazzi, Roberto Rigobon The impact of unconventional monetary policies on European financial markets Macro Finance, Financial Markets 2016 21630 1
Loriana Pelizzon, Marti Subrahmanyam, Jun Uno, Clara Vega The impact of QE interventions on market liquidity and limits to arbitrage Macro Finance, Financial Markets 2016 21630 1

The Dynamics of Finance, Competition and Information Production

Well-operating financial systems are of great importance for innovation, growth and welfare. This project investigates the interrelation between finance and innovation and the role of competition therein, and to analyze the impact of competition and new market entrants on the information-production role of financial markets and their informational efficiency.

Researcher Project Research Area Project Duration Keywords Project ID Publication Count
Alejandro Bernales, Jasmin Gider, Peter Gomber, Satchit Sagade, Stefan Scharnowski, Erik Theissen, Christian Westheide Innovations in Secondary Markets and Their Impact on Market Quality Corporate Finance, Financial Markets 2016 high frequency trading, competition, intermediation, order anticipation 21640 1
Ulrich Doraszelski, Alexander Stomper, Christine Zulehner Firms’ Financial Decisions and Product Market Competition Corporate Finance 2016 21640 1
Douglas Cumming, Christian Eufinger, Andrej Gill, Uwe Walz Banking structure and dynamics of small and medium sized enterprises Corporate Finance, Financial Institutions 2016 21640 1

Social Finance – Finance and the Consumer

This project studies the interactions between consumers and their financial environment, focusing on how these are influenced in their preferences by social and network interactions. Reputation, status, habits and information flows are especially important outside traditional trading places, e.g. on online platforms.

Researcher Project Research Area Project Duration Keywords Project ID Publication Count
Holger Kraft, Christoph Kühn, André Müller Get ahead of the Joneses: Social Status Household Finance 2017 21650 1
Paul Gortner, Joel van der Weele Financial Networks in the Field Household Finance 2016 21650 1
Giuliano Curatola, Ilya Dergunov Time-Varying Preferences and International Capital Markets Financial Markets, Household Finance 2016 Asset pricing, general equilibrium, heterogeneous agents, interdependent preferences, portfolio choice 21650 1
Paul Gortner, Baptiste Massenot Bailouts and financial stability: Experimental evidence Macro Finance, Financial Institutions, Corporate Finance, Financial Markets 2016 21650 1
Olga Goldfayn, Nathanael Vellekoop Social Networks and Informal Lines of Credit Household Finance, Financial Institutions 2016 Personality; Household consumption and Savings 21650 1
Peter Ockenfels, Christian Wilde Financial interactions in the presence of ambiguity Financial Institutions, Financial Markets 2016 21650 1
Alessandro Gioffré, Yuri Pettinicchi Spreading Financial Literacy Among Peers Household Finance 2016 risk-sharing, financial globalisation, aggregate demand, monitoring 21650 1
Paul Gortner, Baptiste Massenot Capital requirements and financial stability: Experimental evidence Macro Finance, Financial Institutions, Corporate Finance, Financial Markets 2016 21650 1
Adrian Buss, Raman Uppal, Grigory Vilkov Where Experience Matters: Asset Allocation and Asset Pricing with Opaque and Illiquid Assets Financial Markets 2016 21650 1
Paul Gortner, Joel van der Weele Financial Networks in the Laboratory Household Finance 2015 21650 1

Liquidity and Longevity Risk Management of Households and Life Insurance Companies in an Aging Society

This team project examines how demographic changes affect the ability of households to manage liquidity and longevity risk and what role life insurance companies can play in contributing to the management of these risks for households.

Researcher Project Research Area Project Duration Keywords Project ID Publication Count
Holger Kraft, Farina Weiss Bequeathing illiquid assets across generations in an aging society Financial Markets, Household Finance 2016 demographic change, overlapping generations, household finance, asset pricing, welfare, life cycle 21660 1
Helmut Gründl, Martin Götz, Holger Kraft, Raimond Maurer Demographic changes, optimal design of life insurance contracts and household welfare Household Finance, Financial Institutions 2016 21660 1
Vanya Horneff, Raimond Maurer, Olivia S. Mitchell Evaluating the benefits of hedging longevity risk using life annuities with liquidity options Household Finance 2016 21660 1
Jens Gal Legal feasibility of proposed changes to the regulation of life insurance contracts Household Finance, Financial Institutions 2016 21660 1
Yangming Bao, Irina Gemmo, Helmut Gründl, Martin Götz Household liquidity risk management and insurance companies’ investment behavior Household Finance, Financial Institutions 2016 21660 1

Household Heterogeneity, Financial Frictions and Inequality

This project investigates three sources of inequality in society: education, labor supply decisions, hence the income generating process, and financial frictions. Understanding these sources is of key relevance for the design of policies that target at a more equal distribution of resources and financial stability.

Researcher Project Research Area Project Duration Keywords Project ID Publication Count
Horst Entorf, Jia Hou Equity of opportunities, educational achievement, and financial literacy Household Finance 2017 21670 1
Nicola Fuchs-Schündeln, Paul Reimers Tax treatment and inequality in labor market behavior Macro Finance, Household Finance 2016 21670 1
Alexander Ludwig, Alexander Monge-Naranjo, Ctirad Slavik, Faisal Sohail Financial Frictions and Inequality Macro Finance, Household Finance 2016 21670 1
Nicola Fuchs-Schündeln, Zhao Jin, Alexander Ludwig Inequality and Assortative Matching Macro Finance, Household Finance 2016 21670 1