Objective
The general purpose of this research proposal is to improve our scientific understanding of the risk-taking of financial intermediaries, the sources and structure of systemic risk and to investigate new directions regarding risk measurement and optimal regulation of the financial sector.
When financial institutions experience negative shocks, they can contaminate each-other. The amplification of initial shocks can spiral into a threat to the solvency of the entire financial system: this is systemic risk. Such contagion between financial intermediaries stems from several kinds of linkages and incentive structures which the proposal investigates. The understanding, measurement and anticipation of financial fragility has been high on financial regulators' priority list since the 2008 collapse of Lehman Brothers and has been revived further by the European sovereign risk.
The research to be initiated under this proposal will mix intimately theoretical work and micro-empirical work. It will try to both increase our understanding of the financial crisis by opening the “black-box” of financial institutions and to directly touch in a concrete and forward-looking manner upon regulatory issues.
The proposal articulates a research program around five main independent projects. Each project combines modeling and empirical tests and is intended to lead to a series of separate academic papers and policy implications.
Project 1: Bank Vulnerability and Fire-Sales Spirals
Project 2: Risk-Shifting, Systemic Risk and Monetary Policy
Project 3: The Source and Dynamics of Rents in the Financial Industry
Project 4: Regulating through Information: What Level of Transparency is Optimal?
Project 5: Inequality, Political Economy and Financial Instability
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: https://op.europa.eu/en/web/eu-vocabularies/euroscivoc.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: https://op.europa.eu/en/web/eu-vocabularies/euroscivoc.
You need to log in or register to use this function
We are sorry... an unexpected error occurred during execution.
You need to be authenticated. Your session might have expired.
Thank you for your feedback. You will soon receive an email to confirm the submission. If you have selected to be notified about the reporting status, you will also be contacted when the reporting status will change.
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
ERC-2012-StG_20111124
See other projects for this call
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Host institution
31080 Toulouse
France
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.