CODE 95175 ACADEMIC YEAR 2024/2025 CREDITS 6 cfu anno 2 ECONOMICS AND DATA SCIENCE 11267 (LM-56) - GENOVA SCIENTIFIC DISCIPLINARY SECTOR SECS-P/01 LANGUAGE English TEACHING LOCATION GENOVA SEMESTER 2° Semester TEACHING MATERIALS AULAWEB OVERVIEW The course aims to present the main open questions debated in financil economics, trying to figure out why solutions offered by scholars and specialists are often divergent and not conclusive. In order to understand these topics it is important to master some basic techniques, that will be studied in the first part of the course AIMS AND CONTENT LEARNING OUTCOMES The objective of the course are: (i) to make students understand the basic assumptions underlying the economic behaviour under uncertainty; (ii) to equip them with the technical tools adopted in neoclassical financial economics to model the price of securities; (iii) to make students aware of the shortcomings of such a neoclassical approach, putting particular emphasis on some empirical/theoretical puzzles such as the equity premium puzzle and the risk free interest rate puzzle. AIMS AND LEARNING OUTCOMES Knowledge of the behaviour of the financial markets in a long run perspective Understanding of the main puzzles in financial economics (active vs passive management, value premium, risk free rate puzzle, equity premium puzzle, speculative bubbles) and of the possible solutions offered by specialists and in the scientific literature. Ability to collect research on a specific topic and to present it to the public. PREREQUISITES None TEACHING METHODS In the first part of the course I will present the issues enumerated in the syllabus In the second part of the course the class will be divided in small groups. Each group will be assigned a topic to study and present to the entire classroom. SYLLABUS/CONTENT A look at the data: the stock market, the bond market, and the real estate market in historical perspective. Are security prices predictable? Bachelier vs Dow. The mean variance approach and the two-fund separation theorem CAPM and subsequent refinements. The equity premium puzzle Consumption ans savings under uncertainty. The risk free interest rate puzzle. RECOMMENDED READING/BIBLIOGRAPHY R. Shiller, Irrational Exuberance, Princeton University Press (third edition) P. L. Bernestein, Capital ideas, Wiley. L. Eeckhoudt, C. Gollier, H. Schlesinger, Economic And Financial Decisions Under Risk, Princeton University Press TEACHERS AND EXAM BOARD GABRIELE CARDULLO Ricevimento: In Imperia: Monday 3.00 pm (second semester only) In Genoa: Thursday 16:30 Exam Board GABRIELE CARDULLO (President) MARCO GUERRAZZI LESSONS LESSONS START Mid September 2022 Class schedule The timetable for this course is available here: Portale EasyAcademy EXAMS EXAM DESCRIPTION Written exam (with both quantitative and qualitative questions) for the first part. In the second part, each student is required to study an article (chosen from a list complied by the teacher) and present it to the class. ASSESSMENT METHODS Each student will be able to understand the different theories advanced to understand the financial markets.. In addition, the second part of the course will be useful to evaluate the ability to understand complex issues and explain them to other people. Exam schedule Data appello Orario Luogo Degree type Note 17/12/2024 13:30 GENOVA Scritto 14/01/2025 13:30 GENOVA Scritto 27/01/2025 13:30 GENOVA Scritto 29/05/2025 13:30 GENOVA Scritto 25/06/2025 13:30 GENOVA Scritto 10/07/2025 13:30 GENOVA Scritto 10/09/2025 13:30 GENOVA Scritto Agenda 2030 - Sustainable Development Goals Industry, innovation and infrastructure