The Center for Financial Frictions (FRIC) began operating on April 1, 2012 and expired on September 30, 2022 when a ‘term limit’ of funding from the Danish National Research Foundation kicked in. It has been an honor and a privilege to host a Center of Excellence. Here are some ways in which the funding has helped us make a difference:
Since the FRIC Center started in 2012, FRIC members have been co-authors of (at least) 52 publications in the top three finance journals: Journal of Finance, Journal of Financial Economics and Review of Financial Studies. In terms of per capita output, this is comparable to the best universities in the world
- Several of our papers are now standard references in the area they study. Their models and findings have already or are in the process of migrating into textbooks, and they inform decision-makers in banks and central banks, asset management, regulation, and policy
- We have organized 9 FRIC Conferences which brought dozens of the world’s most prominent financial economists, including two Nobel laureates, to Copenhagen
- We have organized 10 Top Finance Graduate Awards at which 5-6 of the best PhD candidates from the international academic job market presented their job market paper at CBS
- We have trained 23 PhD students, and placed PhD candidates at leading research institutions, including the University of Chicago and the Federal Reserve Board, and leading European business schools
- 18 of the research assistants hired by FRIC throughout the years went on to continue with research as PhD students at CBS or at other universities
- FRIC has boosted our ability to provide researchers with access to data
- FRIC faculty members and PhD students have taught a very large number of courses and supervised numerous master’s theses at CBS
- The Center Coordinator position, an essential part of our funding, has made it possible to bring in extremely competent administrators, who have been instrumental for FRIC’s success, and has helped lift the administrative support at the Department of Finance to a new level
All PhDs currently employed by FRIC are guaranteed continued funding through generous support from CBS. Faculty members associated with FRIC were funded by CBS throughout and this does not change.
The Department of Finance at CBS will host a new Center of Excellence, Center for Big Data in Finance (BigFin), headed by Professor (and FRIC member) Lasse Heje Pedersen. This Center will start on January 1, 2023, and the opening event will be at CBS on March 9, 2023.