Introduction

The Center for Analytical Finance (CAFIN) is a group of researchers whose aim is to solve real-world problems of finance in a globalized financial system. In order to do so, CAFIN seeks to produce cutting edge research with practical applications in the area of finance and financial markets focusing primarily on three critical areas:

• Systemic Risk: the idea that risks can build up in the financial system leading the whole economy to collapse.

• Market Design: the construction and implementation of rules, platforms, and institutions in which assets are traded.

• Financial Access: the availability of quality financial services for households, companies and countries.

CAFIN, launched on July 1, 2013, is affiliated with the Department of Economics of the University of California, Santa Cruz (UCSC), which has been ranked sixth in the world among academic departments in international finance. The Department also houses a pioneering group of researchers in behavioral economics and finance. CAFIN will also draw strongly from UCSC’s Department of Applied Mathematics and Statistics, home of some of the world’s leading researchers in Bayesian statistical analysis and the modeling of complex, dynamic systems. CAFIN brings together these researchers with practitioners and policymakers to give solutions regarding risk management, robust tools for financial decision-making and policymaking.

CAFIN thanks Dean Sheldon Kamieniecki of the Division of Social Sciences at the University of California, Santa Cruz for providing seed funding.