The Becker Friedman Institute’s Macro Financial Modeling Initiative has awarded a new round of dissertation support to eight doctoral students. These grants help advance innovative research from promising new scholars working on topics related to the development of macroeconomic models with enhanced linkages to the financial sector.
The grants can sustain, expand, and deepen students’ work, providing resources to cover the costs of data, computation, travel to access resources, and other needs.
Funding awarded in June 2016 will support student research on a range of related topics: the structure and interconnectedness of financial markets, the function of mortgage markets, the impact of regulation on financial institutions, the role of information beliefs and uncertainty, and methods of measuring systemic risk.
Awardees in this round of funding include:
- Pablo Azar (Massachusetts Institute of Technology), who studies the effect of network structures on macroeconomic outcomes. He is using social network data to model investors’ mood changes in anticipation of Federal Reserve meeting and predict changes in asset prices.
- Matteo Bennetton (London School of Economics), who is conducting research on the effects of competition in the mortgage market for borrowers’ choice and lenders’ pricing, and how funding costs and capital requirements effect equilibrium prices and allocations.
- Laura Blattner (Harvard University), who aims to forge a closer connection between empirical research and macroeconomic models with financial frictions. Recently, she has been researching micro-level data on financial intermediaries and lending structure at the Bank of Portugal.
- BongGeun Choi (University of Chicago), who is conducting research on macroeconomic welfare assessment of shadow banking, considering dynamic effects of liquidity creation and systemic risk.
- Tetiana Davydiuk (University of Pennsylvania, Wharton School of Business), whose research uses a dynamic general equilibrium (DSGE) model to understand what defines the optimal stringency of capital regulation over the business and financial cycles.
- Victor Duarte (Massachusetts Institute of Technology), who is working on a project on the impact of price and wage rigidities on capital structure in a general equilibrium setting. Another one of his projects involves the development of numerical methods to efficiently solve large non-linear DSGE models.
- Paymon Khorrami (University of Chicago), who investigates the role of financial frictions in asset pricing and macroeconomics with his recent work studying linkages between growth in income inequality and financial intermediation, which have been observed in the U.S. and other developed countries.
- Willem van Vliet (University of Chicago), whose research focused on developing new measures of systemic risk. He is developing a strategy to estimate the interconnectedness of financial institutions from market data in a way that distinguishes between contagion and correlated fundamentals.
With this round of funding, the MFM Initiative had granted support to 46 PhD students since the 2012–2013 academic year. Funding will again be offered to students in 2017. The deadline to apply is January 31, 2017, with awards to be announced in the spring.