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Centre for Finance and Development

Cyclical Investment Behavior across the Financial System

PhD Supervisor and Co-Supervisor: Cédric Tille and Beatrice Weder di Mauro 
Funding Organisation: Swiss National Science Foundation, Doc.CH scheme
Timeline: September 2021–August 2024
Budget: CHF 188,802
Keywords: climate policy, institutional investors, investment behavior, risk-taking

This project analyses the investment behavior of financial institutions from different perspectives. Based on novel, granular data on investors’ portfolios, it compares rates of return on capital exports across countries and illustrates changes in pension funds portfolio holdings over the period of low interest rates.

The second part of the project is concerned with understanding the consequences of climate change policy on the economy and financial markets. Exploring policy variation across European economies, it quantifies the effects of carbon pricing on inflation dynamics and the macroeconomy more broadly. In addition, the project aims to provide causal evidence on the effects of climate policies on the investment behavior of institutional investors. 

Project outputs

Carbon Taxation and Greenflation: Evidence from Europe and Canada” with Beatrice Weder di Mauro, Journal of the European Economic Association, jvad020, 2023.

Exportweltmeister: Germany’s Foreign Investment Returns in International Comparison” with Franziska Hünnekes, Moritz Schularick, Christoph Trebesch and Julian Wingenbach, Revise and Resubmit Journal of International Economics. 

Climate Policy and the Economy: Evidence from Europe’s Carbon Pricing Initiatives” with Diego Känzig, NBER Working Paper No. 31260, 2023. 

Do Pension Funds Reach for Yield? Evidence from a New Database”, IHEID Working Paper No. 01-2023. 

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