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Course unit
FINANCIAL ECONOMICS
ECM0013170, A.A. 2017/18
Information concerning the students who enrolled in A.Y. 2017/18
ECTS: details
Type |
Scientific-Disciplinary Sector |
Credits allocated |
Core courses |
SECS-P/01 |
Political Economy |
10.0 |
Mode of delivery (when and how)
Period |
First semester |
Year |
1st Year |
Teaching method |
frontal |
Organisation of didactics
Type of hours |
Credits |
Hours of teaching |
Hours of Individual study |
Shifts |
Lecture |
10.0 |
70 |
180.0 |
No turn |
Start of activities |
02/10/2017 |
End of activities |
19/01/2018 |
Examination board
Board |
From |
To |
Members of the board |
1 Commissione A.A. 2017/18 |
01/10/2017 |
30/09/2018 |
PARIGI
BRUNO MARIA
(Presidente)
CAPORIN
MASSIMILIANO
(Membro Effettivo)
NUNZIATA
LUCA
(Membro Effettivo)
ZEN
FRANCESCO
(Membro Effettivo)
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Prerequisites:
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FINANCIAL ECONOMICS
Math, Statistics, Econometrics
This course is math-intensive and statistics-intensive and it is a difficult course, unsuitable for undergraduate Erasmus exchanges.
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ADVANCED MICROECONOMICS
Math, Statistics, Econometrics
This course is math-intensive and statistics-intensive and it is a difficult course, unsuitable for undergraduate Erasmus exchanges. |
Target skills and knowledge:
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FINANCIAL ECONOMICS
Aim of the course is to offer students some of the economics tools applicable to finance. Both micro and macroeconomic models are introduced to present various economic and finance issues. The main themes recurring throughout the course are uncertainty, asymmetric information, intertemporal decisions of consumption and investment and asset pricing. Various aspects of the 2007-2009 financial crisis, and how it morphed into the public debt crisis will be analyzed. The course is maths and statistics intensive. Passed experiences suggest that this is a difficult course, unsuitable for undergraduate Erasmus exchanges.
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ADVANCED MICROECONOMICS
Aim of the course: to introduce and extend major topics in microeconomics including consumer theory, production theory, economics of uncertainty, information asymmetry, signaling.
At the end of the course, students will have the groundwork necessary for taking economics to a higher level.
The course is offered jointly by Prof. Manenti (28 hours) and Prof. Parigi (42 hours) that will alternate in class according to the tentative schedule indicated below. For organizational reasons the lectures on Uncertainty: Introduction, and Information: Moral hazard and Adverse selection (approx 22 hours), are offered together with the students of the curriculum in Banking and Finance.
Course attendance is strongly suggested. Only part of the material for the exam is available on line. For those students that for whatever reason (e.g. work, distance, late graduation, etc.) cannot attend a large number of classes we suggest to talk to the teachers in person before attempting the exam, as we would be happy to provide guidance. |
Examination methods:
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FINANCIAL ECONOMICS
Exam sessions: written or oral at the teacher discretion. Students are expected to answer 4 questions: 3 are closed form analytical questions; 1 is an open question aimed at testing critical thinking.
Copies of previous exams and their solutions are available on line.
Students are invited to obtain them to familiarize with style and difficulty.
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ADVANCED MICROECONOMICS
To be announced at the beginning of the course |
Assessment criteria:
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FINANCIAL ECONOMICS
Details to be announced at the beginning of the course
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ADVANCED MICROECONOMICS
Details to be announced at the beginning of the course |
Course unit contents:
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FINANCIAL ECONOMICS
PART I. METHODOLOGY
Decisions under uncertainty and demand for insurance
Demand for insurance with asymmetric information
Basic of bonds, stocks, seniority, collateral
PART II. CRISIS
Financial instability: Theory
Financial instability: Applications
Financial instability: liquidity
The role of bank capital
Crisis: debt overhang, legacy assets, difficulty of raising capital
Crisis and asset valuations
Credit relationship
PART PART III MACRO
Crisis and public debt: models
Crisis and public debt: empirical evidence
Asset pricing
Anomalies in Portfolio choices
PART IV. CORPORATE FINANCE
Signaling in corporate finance
Payout policies
Market micro structure
Corporate Governance and incentives
PART V. RISK
Risk structure of interest rates and hedging
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ADVANCED MICROECONOMICS
CONSUMER THEORY (Manenti) approx. 10 hours
UNCERTAINTY: INTRODUCTION (Parigi) approx. 12 hours together with students of Financial Economics
INFORMATION: MORAL HAZARD AND ADVERSE SELECTION (Parigi) approx. 10 hours together with students of Financial Economics
PRODUCTION THEORY (Manenti) approx. 8 hours
MARKET STRCUTURE: INTRODUCTION (Manenti) approx. 10 hours
UNCERTAINTY: ADVANCED TOPICS (Parigi) approx. 8 hours
INCENTIVES (Parigi) approx. 6 hours
SIGNALING (Parigi) approx. 6 hours |
Planned learning activities and teaching methods:
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FINANCIAL ECONOMICS
Presentation of mathematical models by teacher and exercises. Students presentations.
ADVANCED MICROECONOMICS
Presentation of mathematical models by teacher and exercises. |
Additional notes about suggested reading:
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FINANCIAL ECONOMICS
There is no textbook, only teacher’s lecture notes.
Most of the lectures are on line in the web site of this course and the relevant file is indicated near the topic.
Previous exams and solutions are on line in the web site of this course.
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ADVANCED MICROECONOMICS
The lectures of Manenti are based on i) teacher’s notes and ii) a good text in Microeconomics, e.g. Varian, H. Microeconomic Analysis, Norton, 1994.
The lectures of Parigi are based on teacher’s notes. The texts of many, but not all, lectures are available on line in the moodle platform. |
Textbooks (and optional supplementary readings) |
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none, --. --: --, --.
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