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Publications

When Uncertainty and Volatility Are Disconnected: Implications for Asset Pricing and Portfolio Performance (with Yacine Ait-Sahalia, Emilio Osambela & Ronnie Sircar) Journal of Econometrics (2025)

 This paper analyzes the impact of the disconnect between uncertainty and volatility on risk premia and optimal portfolio policies. 

Economic Policy Uncertainty and the Yield Curve (with Markus Leippold) Review of Finance (2022) Editor's choice

 This paper explores the relationship between economic policy uncertainty and the term structure of interest rates, its volatility curve as well as the term and bond risk premia.

Robust consumption and portfolio policies when asset prices can jump (with Yacine Ait - Sahalia), Journal of Economic Theory (2019) Lead Article

 This paper studies the consumption and investment problem under model uncertainty when the underlying asset follows a Lévy process 

Current Working Papers

Beyond Carbon Pricing: Integrating Mitigation, Adaptation, and Carbon Removal (with Markus Leippold)

We provide an optimal policy mix to tackle the negative impact of climate change when first-best carbon taxes are not implementable

Political Uncertainty & Currency Markets (with Markus Leippold, Philippe Müller & Michal Svaton)

 This paper shows how FX implied volatility and its skewness respond to the resolution of election uncertainty

Work in Progress

Sentiment Based Asset Pricing (with Yacine Ait-Sahalia, Patrick Cheredito & Patrick Beissner)

 We explore the asset pricing implicatons of a representative agent which is subject to sentiment swings

Dynamic Disaster Insurance (with Patrick Cheredito & Lukas Schmid)

 In this paper, we develop a dynamic insurance framework when firms are subject to costly recapitalization when a disaster event occurs

Other Publications

The Greek Debt Crisis: An Ongoing Odyssey, Fondation Pierre du Bois, August 2016 

 This short review paper discusses the Greek Debt Crisis

Resting Working Papers

Endogenous Markov Switching Regression Models for High-Frequency Data under Microstructure Noise (with Markus Leippold)

 This paper, we present a novel method for analyzing microstructure noise of high-frequency data as a measurement error problem

© May 2025 by Felix Matthys.

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