This course surveys the field of investments with special emphasis on the valuation of financial assets. Issues studied include how portfolios of assets should be formed, how to measure and control risk, how to evaluate investment performance and how to test alternative investment strategies and asset pricing models.
Instructors: Martin Cherkes
Fixed Income: Models and Applications
This course will deal with no-arbitrage models of contracts based on interest rates including bonds, forward and future contracts, swaps, options and other derivatives. We will develop the theory of arbitrage-free pricing of financial assets in discrete and continuous time, as well as many special models that can be used to price and hedge fixed income securities.
This course studies firms, markets and competition. We will study the theory of industrial organization, focusing on analyzing the way firms make decisions, as well as the impact of those decisions on market outcomes such as market prices, quantities, the type of products offered and social welfare. The goals of the course include the development of intuition for firm strategic behavior, such as pricing, as well as the development of skills for the analysis of formal models.
Instructors: Nicholas Wyeth Buchholz
Industrial Organization and Public Policy
Methods for empirical and theoretical analysis of markets composed of productive enterprises and their customers are studied. Analyses are applied to modern market structures and practices, and public policy towards them. Topics include the roles of technology and information, the structure of firms, modes of interfirm competition, determination of price, quality, and R & D investment, and criteria for government intervention.
Industrial Organization Workshop
Drafts of papers, articles, and chapters of dissertations or books, prepared by graduate students, faculty members, or visiting scholars, are exposed to critical analysis by a series of seminars organized by field. The chief objectives are for the writers to receive the benefit of critical suggestions, for all participants to gain experience in criticism and uninhibited oral discussion, and for students and faculty members to become acquainted with the research work going on in the department. Third- and fourth-year graduate students are expected to attend; first-and second-year students and faculty members are invited to attend.
Institutional Finance, Trading, and Markets
This course covers important theoretical concepts and recent developments in asset pricing under asymmetric information, financial intermediation, behavioral finance and market microstructure. Topics include market efficiency, liquidity crises, asset price bubbles, herding, risk management, market design and financial regulation. The course examines these concepts theoretically as well as via a simulation software, whereby classic decision-making settings are realistically revisited in a competitive classroom environment.
This course will focus on less developed countries and will consider topics such as economic growth and personal well-being; economic inequality and poverty; intra-household resource allocation and gender inequality; fertility and population change, credit markets and microfinance; labor markets and trade policy. The course will tackle these issues both theoretically and empirically.
Instructors: Alicia Adsera
International Monetary Economics
This course studies topics in open-economy macroeconomics and international finance. Topics include Exchange Rates,Current Account Imbalances, Inflation, Sovereign Debt, and Open Economy Macroeconomics. The course will include economic theory as well as several applications.
Instructors: Iqbal Zaidi
International Monetary Theory and Policy I
This sequence (with ECO 554) develops core models of international finance and open-economy macroeconomics, and surveys selected current research topics in the field. Topics treated in the first semester include: the intertemporal approach to the current account; the determination of real exchange rates, and purchasing power parity; international CAPM and uncovered interest rate parity; sovereign debt crisis; speculative attacks and liquidity crises; international risk sharing and capital flows, home bias, and the stability of the international financial system.
International Trade I
The determinants of foreign trade: (1) inter-country differences of factor endowments and technologies and (2) scale economics and imperfect competition are studied. Dynamic comparative advantage; innovation and growth; factor movements and multinational corporations; gains from trade; tariffs and quantitative restrictions on trade and their role in dealing with market failures and oligopolies; the political economy of trade policy; international negotiations on trade policy; and economic integration are studied as well.