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Research Papers In Banking And Financial Economics

In the last twenty years mathematical finance has developed independently from economic theory, and largely as a branch of probability theory and stochastic analysis. This has led to important developments e.g. in asset pricing theory, and interest-rate modeling.

This direction of research however can be viewed as somewhat removed from real-world considerations and increasingly many academics in the field agree over the necessity of returning to foundational economic issues.

Mainstream finance on the other hand has often considered interesting economic problems, but finance journals typically pay less attention to the high-level quantitative approach. When quantitative methods useful to economists are developed by mathematicians and published in mathematical journals, they often remain unknown and confined to a very specific readership. More generally, there is a need for bridges between these disciplines.

The aim of this new journal is to reconcile these two approaches and to provide the bridging links between mathematics, economics and finance. Typical areas of interest include foundational issues in asset pricing, financial markets equilibrium, insurance models, portfolio management, quantitative risk management, intertemporal economics, uncertainty and information in finance models.

History:
The first Editor-in-Chief was Elyès Jouini (2007), succeeded by Ivar Ekeland (2011) and from 2014, by Ulrich Horst and Frank Riedel jointly.

Browse Volumes & Issues

Research in the Financial Economics (FE) programme covers: 

Financial Markets

  • Pricing of Securities and Derivatives
  • Asset Pricing and Business Cycles
  • Microstructure and Regulation of Markets
  • Financial Decision Making
  • International Finance

Corporate Finance

  • Financial Structure, Security Design and and Firms’ Decisions
  • Going Public
  • Corporate Control and Governance

Banking

  • Financial Intermediation
  • Bank Supervision and Regulation
  • Banking, Financial Markets, and Economic Activity

The Financial Economics Programme is directed by Franklin Allen (Imperial College, London).

Fellows and Affiliates in the FE Programme meet annually at the European Summer Symposium in Financial Markets (ESSFM). Hosted since 1991 by the Studienzentrum Gerzensee, ESSFM includes daily seminars in which participants present their work, as well as less formal seminars scheduled at the beginning of the Symposium. A substantial amount of time is reserved for independent work and collaborative research, which provides participants with a unique opportunity to interact and discuss each other's research. In addition, every Symposium features 'focus sessions', each of which concentrates on the latest developments at the research frontier in a specific area of research.

Recent Symposia include:

More information on the Financial Economics Programme: