Decorative. Photo of Jose Lopez giving a talk to students.
Logo: UC Santa Cruz, CAFIN, Center for Analytical Finance

Welcome to CAFIN!

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. We seek to: 

  • Push the frontiers of financial knowledge
  • Demystify financial markets and practitioners
  • Teach modern finance in broader context to empower consumers in financial decision-making
  • Show how to level the playing field, improving access to financial markets and services
  • Identify problems in financial markets and how to fix them
  • Bring experts from outside finance to provide context and unique skills

Read more about CAFIN…

Research Bulletins

Featured Research

Working Paper No. 2302: Business Cycles and the Balance Sheets of the Financial and Non-financial Sectors

Author: Alonso Villacorta

Abstract: I propose and estimate a model in which bank and firm net worth influence output dynamics. Firm borrowing capacity depends on firm net worth. Banks lend to firms and use their diversified portfolio as collateral, expanding the flow of funds. Banks require net worth due to aggregate risk. Aggregate firm and bank net worth determine activity. The net worth distribution is only relevant in banking crises, in those, shocks to bank net worth have an effect beyond standard financial frictions models. A novel bank accelerator helps explain output, bank net worth, lending and spreads during the 1990, 2001, and 2008 recessions.

Link: Download Here

News & Events

  • CAFIN News April 2024
    CAFIN Steering Committee member Brenda Samaniego de la Parra is participating in a seminar organized by Innovations for Poverty Action (IPA) and hosted by Instituto Tecnológico Autónomo de México (ITAM) on April 18th and 19th, 2024 in Mexico City. Researchers are presenting their recent work in areas such as Environment and Climate Change, Finance and… Read more: CAFIN News April 2024
  • CAFIN News, January 2024
    In a recent article, Climate Risks and FDI, Prof. Galina Hale and Prof. Grace Gu, Co-Director and Steering Committee Member of CAFIN, respectively, study whether multinational firms react to climate risks (physical risk in terms of disasters and transition risk in terms of climate-change mitigation policies). They answer this question by examining the dynamics of Foreign… Read more: CAFIN News, January 2024
Collage of speakers who spoke at CAFIN

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Last modified: Jan 31, 2024