FOR 5583 - TP2: Identification, measurement and pricing of spillover risks and uncertainty in networks

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Project status	granted
Project time	01.04.2026- 31.03.2030
Funding source	DFG - Research Unit
Project number	BR 2923/4-1
Keywords	Unsicherheit; Finanzmärkte; Asset-Pricing-Modelle

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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.