The course aims to provide the student with the technical and theoretical tools to understand the choices of economic agents in uncertainty. First, the fundamental concepts of neoclassical risk and decision theory will be addressed: risk aversion and stochastic dominance. Various specific themes such as asset pricing models, general equilibrium models with Arrow-Debreu securities, and consumption and savings choices will be touched in uncertainty.
In the first part of the course I will present the fundamental concepts involving the economic decisions under uncertainty. In the second part of the course, the class will be divided in groups. Each group has to study a specific topic and present it to the entire class.
Gollier, C. The Economics of risk and time, MIT Press
Ricevimento: In Imperia: Tuesday 3:00 pm (second semester only) In Genoa: Thursday 4:00 pm
GABRIELE CARDULLO (President)
MARCO GUERRAZZI
