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The Cambridge-INET Institute

Faculty of Economics

Studying at Cambridge


Research Themes

Networks, crowds and markets

Transmission mechanisms and economic policy

Information, uncertainty and incentives

Empirical Analysis of Financial Markets

Social, economics, and infrastructure networks are a defining feature of modern economies. The Networks Theme at the Cambridge-INET Institute is one of the world's strongest cluster of researchers in this dynamic and fast growing field. There are three broad themes of work. One line of research is concerned with the dynamics of networks. This is motivated by topical problems like technological innovation, financial contagion, cybersecurity, disease epidemics, supply chain disruptions and international conflict. A second strand of work explores the relationship between markets, states and community networks; how traditional communities shape the behaviour of individuals and groups in a modern economy. This work has important implications for the optimal design of development policy. A third research theme explores bargaining, production and exchange in networks, with implications for industrial policy and the regulation of markets.

There has been increasing interest in the study of the role of financial frictions and distortions in shaping the transmission of shocks and policies, and determining the level of demand and economic activity within and across borders. A key question concerns the extent to which macro models can account for stylized facts apparently at odds with well-functioning, integrated financial markets.

Economics starts from the premise that phenomena should be understood as a result of individual choices. Competition, coordination, and learning are vital in aggregating individual choices. Research in this field aims to deepen our understanding of risk-sharing, herding and crises in financial markets, and the incentives and efficiency of auctions and matching mechanisms.

Financial markets serve the important function of transferring risk across individuals and over time, and they provide information on the performance of firms and economies. So their effective performance is of great interest to policymakers, pension holders, and consumers, yet recent events have created profound mistrust about their operation.