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
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.
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.
None
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.
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
Ricevimento: In Imperia: Monday 3.00 pm (second semester only) In Genoa: Thursday 16:30
GABRIELE CARDULLO (President)
MARCO GUERRAZZI
Mid September 2022
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.
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.
