Identification, measurement and pricing of spillover risks and uncertainty in networks

• Applicants: Professorin Dr. Nicole Branger; Professorin Dr. Melanie Schienle
• Subject Area: Accounting and Finance
• Term: since 2025
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 509303834

This project investigates the impact of regulatory risk and uncertainty on networks of the real economy and financial markets. We develop empirical identification and estimation strategies as well as asset pricing models with endogenous network formation in order to quantify how regulatory interventions affect the granular and aggregate network structure and how these changes ultimately impact asset prices. From the joint advancement in theoretical modelling and econometric techniques we expect a deeper understanding of the transmission channels of regulatory uncertainty and better predictions of short and long-term effects in the real economy and financial markets that we use for a detailed analysis of the Trump tariff war regulatory interventions.

• DFG Programme: Research Units
• Subproject of: FOR 5583: Asset allocation and asset pricing in regulated markets and institutions