Center for Financial Frictions
The FRIC Center carried 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 investigated 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 analyzed the impact of financial frictions on the prices of financial assets, on economic development and on the design and regulation of financial markets.
The FRIC center was managed by Center Leader David Lando and the center counted 5 Professors, 2 Associate Professors, 5 Assistant Professors/Post Docs and 11 PhD Students at CBS. In addition, there were 4 external professors from different international universities associated with FRIC. The Center also had 1 Center Coordinator and 6 Student Assistants.
The Center for Financial Frictions (FRIC) was a Center of Excellence funded by the Danish National Research Foundation. The FRIC Center was initiated in April 2012 and the current grant runs for a 6-year period, after which we will have the possibility of applying for an extension of an additional 4-year period.
You can find our annual highlights below.