Financial economics is a multifaceted area; in addition to core subjects like asset pricing, risk management, and corporate governance, it encompasses the legal, regulatory, tax, and governance frameworks surrounding the financial system.
The department of Economics at LUSEM has a well-established group of researchers in financial economics. The team collaborates presently with all major Swedish universities, and it has built a strong Nordic network, collaborating with all major Nordic universities.
During the past ten years, a significant number of high-quality research projects have been carried out by this group. The research addresses issues on measuring and managing financial risks, asset pricing, portfolio choice, and credit and commodity derivatives.
The financial crisis revealed the need for an improved understanding of interaction between macroeconomics and finance. A part of our research deals with topics such as the causes and consequences of financial crises and covers the interaction between the financial sector and the rest of the economy.
Examples of ongoing projects include, liquidity and financial markets, risk spill over among financial markets, credit risk and the stability of the global financial system, and commodity-market research. In addition, work in behavioral finance is carried out by researchers with a strong background in experimental economics and cognitive psychology.