Economics and Finance

In 2008, AXA's generous contribution of €3 million to Toulouse School of Economics (TSE)'s capital set the stage for a strategic battle to reverse the brain drain, with the esteemed Jean Tirole leading the research. 

The effects of this collaboration are evident through the ongoing recruitment of senior researchers, including renowned experts such as Christian Hellwig, a financial macroeconomics specialist from UCLA and former editor of the esteemed Journal of Economic Theory. Additionally, TSE has offered tenure-track positions to numerous young doctors, predominantly from prestigious American universities such as Columbia, Yale, and Princeton. 

The significant research conducted as part of this partnership has yielded impactful outcomes. Notably, research on the regulation of financial markets, banks, and insurance has been a focal point. This work, which includes contributions from Jean Tirole himself, has addressed critical concepts such as liquidity and liquidity premium risk. The researchers' scientific work has also made substantial contributions to the debates surrounding Basel III, Solvency II, and the assessment of long-term contractual commitments of insurers. 

Furthermore, the research extends to the crucial field of climate economics, encompassing the economic analysis of climate risk and the measurement of the social cost of carbon. The insights derived from this research have resulted in recommendations on economic governance tools aimed at reducing emissions, demonstrating the tangible impact of the collaboration between TSE researchers, including Nicolas Treich, Jean Tirole, and Christian Gollier.