First cycle
degree courses
Second cycle
degree courses
Single cycle
degree courses
School of Economics and Political Science
Course unit
EPP6077339, A.A. 2018/19

Information concerning the students who enrolled in A.Y. 2017/18

Information on the course unit
Degree course Second cycle degree in
EP2422, Degree course structure A.Y. 2017/18, A.Y. 2018/19
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Degree course track BANKING AND FINANCE [001PD]
Number of ECTS credits allocated 9.0
Type of assessment Mark
Course unit English denomination PERSONAL FINANCE
Website of the academic structure
Department of reference Department of Economics and Management
E-Learning website
Mandatory attendance No
Language of instruction English
Single Course unit The Course unit CANNOT be attended under the option Single Course unit attendance
Optional Course unit The Course unit can be chosen as Optional Course unit

Teacher in charge GUGLIELMO WEBER SECS-P/05

ECTS: details
Type Scientific-Disciplinary Sector Credits allocated
Core courses SECS-P/05 Econometrics 9.0

Course unit organization
Period First semester
Year 2nd Year
Teaching method frontal

Type of hours Credits Teaching
Hours of
Individual study
Lecture 9.0 63 162.0 No turn

Start of activities 01/10/2018
End of activities 18/01/2019
Show course schedule 2019/20 Reg.2017 course timetable

Examination board
Board From To Members of the board
3 Commissione AA 2019/20 01/10/2019 30/11/2020 WEBER GUGLIELMO (Presidente)
DAL BIANCO CHIARA (Membro Effettivo)
ZAMBON NANCY (Membro Effettivo)
2 Commissione AA 2018/19 01/10/2018 30/09/2019 WEBER GUGLIELMO (Presidente)
DAL BIANCO CHIARA (Membro Effettivo)
ZAMBON NANCY (Membro Effettivo)
1 Commissione AA 2018/19 01/10/2018 30/09/2019 WEBER GUGLIELMO (Presidente)
GALAVOTTI STEFANO (Membro Effettivo)
PARIGI BRUNO MARIA (Membro Effettivo)

Prerequisites: Students are expected to be familiar with the basics of the economics of risk and uncertainty (such as expexted utility) and econometrics.
Target skills and knowledge: Students will have the opportunity to employ basic notions of economics of financial markets and econometrics to investigate the saving and investment behaviour of households (both in financial and real assets). Students will be able to work in groups towards class presentations, and this should enhance their communication skills, independent judgement and learning skills.
Examination methods: Written exam. Class presentations will be awarded extra marks.
Assessment criteria: Students will answer written questions about different parts of the course. They will also be able to earn additional points through class presentations.
Course unit contents: Personal finance (also known as household finance) asks how households actually invest, and how they should invest. It tackles the issues of participation in financial markets and portfolio diversification, as well as the consumption/saving decision. It further investigates financial investment issues that are particularly relevant for individuals or households: housing and mortgage decisions, consumer credit, and investment in private pensions.

Two thirds of the course will be devoted to the standard model, where individuals maximize expected life-time utility subject to a number of constraints. Transaction costs and information asymmetries are typically considered as possible explanations of why households do not invest according to textbook prescriptions. Important explanations that have recently been explored include low financial literacy and lack of trust.

The other third of the course will instead introduce an alternative approach, known as behavioural finance. Behavioural finance builds upon some descriptive models for decision making under risk recently developed by psychologists, focusing on prospect theory, cumulative prospect theory and on the concepts of loss aversion, probability distortion, and mental accounting.
This part of the course will provide a description of market anomalies and inefficiencies, and discuss some psychological biases and limits of real investors that might generate those anomalies. It will then present behavioural models for portfolio selection that can explain these anomalies, also discussing how they can be integrated into the advisory process of banks.
Planned learning activities and teaching methods: The course will mostly, but not exclusively, consist of lectures.
Textbooks (and optional supplementary readings)
  • Guiso, Luigi; Jappelli, Tullio; Haliassos, Michael, Household portfoliosedited by Luigi Guiso, Michael Haliassos, Tullio Jappelli. Cambridge: London, MIT press, 2002. Cerca nel catalogo

Innovative teaching methods: Teaching and learning strategies
  • Lecturing
  • Working in group
  • Flipped classroom

Sustainable Development Goals (SDGs)
Quality Education Industry, Innovation and Infrastructure Reduced Inequalities