Center for Financial Frictions
The Center for Financial Frictions (FRIC) is a Center of Excellence funded by the Danish National Research Foundation.
The FRIC Center carries out theoretical and empirical analyses of the impact of financial frictions on the prices of financial assets, on economic development and on the design and regulation of financial markets.
FRIC investigates financial frictions, which are costs or impediments to financial transactions. Financial frictions occur for instance as a result of the varying ease by which financial assets are traded (their liquidity), the transactions costs, borrowing constraints, credit risk, capital requirements for financial institutions, and asymmetric information among market participants.
Through a theoretical and empirical approach, the FRIC center analyzes the impact of financial frictions on the prices of financial assets, on economic development and on the design and regulation of financial markets.
If you wish to learn more about FRIC, we invite you to take a look around our website.
You can find FRIC activities, including upcoming conferences, seminars, practitioner seminars and workshops under FRIC events
We have made 4 videos in which Center Director David Lando explains about Frictions, Liquidity, American call options and Capital demands for banks (in Danish). These videos were produced in connection with the FRIC Center's participation in the Science in the City Festival 2014 and you can find the videos, if you visit Public Outreach here.