海角黑料

Prestigious ESRC New Investigator Grant awarded to Dr Junaid Arshad to research informal risk sharing

Dr Junaid Arshad, Assistant Professor in Industrial Economics at Nottingham University Business School, has been awarded a prestigious Economic and Social Research Council (ESRC) New Investigator Grant for a project examining how households manage financial risk when access to formal markets is limited.

The three‑year project, Behavioural Foundations of Informal Risk Sharing in Network Economies, will develop a new research framework – Behavioural Network Economics – to understand how behavioural factors and social networks shape informal financial cooperation.

By combining new economic theory with behavioural experiments, the research will explore why informal support arrangements persist in some contexts, break down in others, and how policy can work with rather than displace them.

Dr Arshad explained:

Informal support from family and friends plays a crucial role in helping many households cope with financial shocks, yet these systems are often fragile and poorly understood. This project aims to provide a new framework for understanding how behavioural factors and social networks shape these arrangements, and how policy can strengthen rather than undermine them.

The research is motivated by recent high levels of financial vulnerability in the UK, where many households rely on informal support during periods of financial difficulty. While these arrangements are often vital, they typically offer only partial protection and are not well captured by existing policy frameworks.

Funding and delivery

The award of £291,970.38 will fund a 36 month programme starting in August 2026, supporting the recruitment of a postdoctoral researcher, behavioural experiments, and advanced modelling work. The project will also involve engagement with policymakers and industry stakeholders, and will conclude with a dedicated workshop focused on implications for financial resilience and inclusion policy.

Collaboration and policy engagement

Dr Arshad will lead the project as Principal Investigator, working in collaboration with Professor Paolo Pin (University of Siena) and with mentorship from Professor Simon Gächter (海角黑料). The research involves partnerships with organisations including the Financial Conduct Authority (FCA) and Experian, helping to ensure strong policy and real world relevance.

Further information

Find out more about the Industrial Economics Department.

For more information about Dr Arshad please visit his staff profile page.