The DOLFINS Project addresses the global challenge of making the financial system better serve society. It does so by placing scientific evidence and citizens’ participation at the centre of the policy process in finance. The project strives to give scientific evidence and citizens’ participation central roles in the policy process concerning finance. DOLFINS focuses on two crucial and interconnected policy areas that are shaping the public debate: How to achieve financial stability and how to facilitate the long-term investments required by the transition to a more sustainable, more innovative, less unequal and greener EU economy. The expected impact is to achieve crucial advances in reshaping the policy process to overcome the financial and political crisis faced by the EU. The DOLFINS Project delivers quantitative tools to evaluate policies aiming to tame systemic risk and to foster sustainable investment. The tools are based on fundamental research combining network models and algorithmic game theory with broader economic insights. This approach can provide a more satisfactory understanding of credit, risk and sustainable investments in an interconnected world. The DOLFINS Project investigates how to engage citizens in the early stage of the policy making process and develops evidence-based narratives in order to better shape policies in the public interest. To this end, our project takes advantage of semantic web technologies, big data and ICT in general. Given the highly technical nature of key issues in finance, the Project explores how ICT and art can facilitate citizens’ engagement through innovative narratives, leading to better coordinated actions of stakeholders.
Objectives & Workplan
In the following, we describe the workplan of the DOLFINS Project in terms of the objectives of each Work Package.
Work Package 1: Policy Modelling
- Investigate, by means of network models and algorithmic game theory, the process of endogenous money creation in financial networks: while necessary to the economy, it may create unintended distortions, systemic risk, and give banks excessive influence.
- Design incentives to discourage financial agents from strategically exploiting complexity and asymmetries in information access and information-processing speed.
- Design incentives to channel funds towards long-term, socially inclusive and sustainable investments and compare possible institutional structures for this purpose.
Work Package 2: Policy Evaluation
Provide quantitative evaluations of policy proposals in the public debate (e.g., by means of simulations and numerical analyses), both from the point of view of systemic risk and sustainability, covering:
- the EU banking structural reform and the G-SIFI’s
- the EU Long-Term Financing measures and the global network of pension funds
- the social finance network
- the international monetary system
Work Package 3: Engaging Citizens
- Demonstrate how we can create awareness on the role of finance in society and on the influence exerted over the policy process by the financial industry and, at least potentially, by European citizens.
- Demonstrate how we can engage citizens online and enable their participation in the policy making process by having a say over the management of their bank and pension savings.
- Investigate, through a pilot platform, what kind of ICT tools and financial instruments could facilitate the collective action of citizens to demand investments that are more in line with their societal values.
Work Package 4: Dissemination
- Disseminate the scientific output of the project to the relevant scientific community, in coordination with other GSS projects.
- Reach the regulators’ community and promote GSS-tools uptake
- Communicate the results to the broader scientific audience and the general public.
Work Package 5: Management
- Coordinate administrative and financial procedure for the well-functioning of the project.
- Coordinate the scientific activity across the consortium in order to achieve the goals of the project.
Grant agreement number:
640772 — DOLFINS — H2020-FETPROACT-2014
This project (the DOLFINS project) has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 640772.
This work was also supported by the Swiss State Secretariat for Education, Research and Innovation (SERI) under contract number: 15.0012