The Department of Economics at Cornell University has teaching and research interests in both theoretical and empirical finance, especially in the areas of market microstructure and financial econometrics. Faculties involved in finance research and teaching include D. Easley, Y. Hong, N. Kiefer and U. Possen. The Microeonomics theory seminars and the Econometrics seminars often have finance-oriented talks. There are also close collaborations between the faculties from the Economics Department and Johnson Graduate School of Management, which include the joint works between Easley, Kiefer and O'Hara on market microstructure, and Hong and Li on econometric analysis of interest rate models. Many Ph.D. students in the Department are writing their dissertations in finance. Current research interests of the related faculties and Ph.D. students include evaluation of out-of-sample density forecasts, estimation and testing of continuous-time models, term structure modeling, fixed-income derivatives, credit risk modeling, testing asset pricing models, financial risk management, behavioral finance, and predictability of financial returns.