Focused on the challenges of finding sustainable finance solutions and assessing their impact on society, TSE launched the Sustainable Finance Center in 2018 to promote innovative research on emerging issues in economics and finance. Created with the help of industrial and institutional partners, the Center facilitates a productive dialogue between researchers and industrial partners and policy makers.
The center counts over 40 scholars working in finance, macroeconomics, environmental economics, psychology, and public economics and industrial partners to spur innovative research and disseminate cutting-edge research findings on today’s major societal challenges around sustainable finance to firms, policymakers and the wider public.
The main activities of the center:
- Scientific production: academic publications, conferences, seminar etc.
- Transfer of knowledge: to practitioners and policy makers.
- Public debate: dissemination of economic knowledge.
The center is organized around four research focuses:
Responsible Finance & Long-term Investments
Do we invest enough in long-term assets? How should we value immediate benefits compared to distant ones? How can we measure and evaluate externalities imposed by firms on society? How can we provide incentives for economic agents to incorporate these externalities in their decisions? Answering these questions is crucial to address contemporary concerns about climate change, nuclear risk, education and training, customer safety, and the welfare of employees and communities.
- Program leader: Catherine Casamatta works on corporate finance theory, venture capital, investment fund management and managerial compensation.
Financial Technologies & Digital Markets
The objective of this research program is to investigate the implications of key features of FinTech and cryptocurrencies, and their impact on social welfare. In particular, the program studies the way markets, institutions and regulations should be designed to mitigate problems such as coordination issues, information asymmetries and other market failures.
- Program leader: Christophe Bisière works on market microstructure, empirical finance, experimental finance, blockchains, cryptomoney and FinTech.
Financial Intermediaries & Regulation
The objective of this research program is to investigate various topics related to monetary economics and aggregate liquidity, payment systems, prudential regulation, market finance and microstructure, to deepen our understanding of financial intermediation and the prevention of crises.
- Program leader: Patrick Fève works on macroeconomics, international economics and applied econometrics.
Financial Behaviors, Welfare & Markets (in)Efficiencies
The capacity of financial markets and intermediaries to price assets, finance the economy and allocate risks may be hindered by informational frictions and by human cognitive biases. How do those frictions impact investors’ welfare and the efficiency of the financial industry? How are their effects worsened or mitigated by different market arrangements?
- Program leader: Milo Bianchi works on household finance, behavioral finance and corporate finance.