2. Professors
  3. BENNARDO Alberto
  4. Teaching

MICROECONOMICS OF FINANCIAL MARKETS

Alberto BENNARDO MICROECONOMICS OF FINANCIAL MARKETS

0222200040
DEPARTMENT OF ECONOMICS AND STATISTICS
EQF7
ECONOMICS
2021/2022

OBBLIGATORIO
YEAR OF COURSE 1
YEAR OF DIDACTIC SYSTEM 2018
SPRING SEMESTER
CFUHOURSACTIVITY
1060LESSONS
ALBERTO BENNARDO T Curriculum
Objectives
EQUILIBRIUM MODELS ANALYSING THE BEHAVIOUR OF INDIVIDUALS AND ISTITUTIONS TRADING IN FINANCIAL MARKETS ARE PRESENTED, BY EMPHASIZING THE ROLE OF THE MARKET AS A COORDINATION DEVICE OF INDIVIDUAL DECISIONS.
STUDENTS WILL BE ENDOWED WITH THE ANALYTICAL TOOLS NECESSARY TO INTERPRET REAL FINANCIAL MARKETS PHENOMENA. IN PARTICULAR, THEY WILL ACQUIRE THE ABILITY TO ANALYSE, WITHIN AN INTER-TEMPORAL CONTEXT, THE DETERMINANTS OF DEMAND, SUPPLY AND EQUILIBRIUM PRICES, OF RISKY ASSETS IN FINANCIAL MARKETS.
THE PROGRAM COVERED IN THE COURSE WILL ALSO PROVIDE STUDENTS THE ANALYTICAL TOOLS NECESSARY TO CRITICALLY ASSESS THE FUNCTIONING OF REAL FINANCIAL MARKET, BY FOCUSING BOTH ON THE BENEFICIAL TRADING OPPORTUNITIES OFFERED TO DIFFERENT TYPES OF AGENTS (INDIVIDUALS, FIRMS AND FINANCIAL ISTITUTIONS OPERATING IN THIS MARKETS) AND ON A GENERAL WELFARE PERSPECTIVE.
Prerequisites
NONE
Contents
1. FUNCTIONS OF THE FINANCIAL MARKETS: INTERTEMPORAL ALLOCATION OF RESOURCES; CAPITAL APPLOCATIONS ACROSS INVESTMENT PROJECTS; DIVERSIFICATION AND RISK-SHARING.
2. INTERTEMPORAL CHOICE: SAVINGS AND INVESTMENT.
3. CHOICE UNDER UNCERTAINTY: SPACE OF ALTERNATIVES AND MONETARY CONSEQUENCES
4. RISK AVERSION AND RISK PREMIUMS
5. RISK CORRELATION AND INSURANCE
6. INVESTMENT UNDER UNCERTAINTY.
7. THE LAW OF ONE PRICE: ARBITRAGE AND ASSETS' PRICING
8. CONSUMPTION, PRODUCTION AND THE WALRASIAN EQUILIBRIUM.
9. THE RISK RETURN TRADE-OFF: (I) THE MEAN-VARIANCE MODEL (CAPM);
10. WELFARE AND REGULATION OF FINANCIAL INTERMEDIARIES.


Teaching Methods
LECTURES, EXERCISES' SESSIONS, STUDENTS' PRESENTATIONS, AND WORKSHOPS.
Verification of learning
WRITTEN AND ORAL EXAM. THE WRITTEN EXAM LASTS TWO HOURS. THE ORAL EXAM LASTS TWENTY MINUTES, APPROXIMATELY. ONLY STUDENTS PASSING THE WRITTEN EXAM ARE ADMITTED TO THE ORAL EXAM.
THE WRITTEN EXAMS INCLUDES OPEN QUESTIONS, AIMED AT VERIFYING THE STUDENT'S UNDERSTANDING OF THE CONTENTS OF THE COURSE, AND EXERCISES INTENDED TO ASCERTAIN THE ABILITY TO APPLY FORMAL KNOWLEDGE TO THE ANALYSIS OF INDIVIDUAL BEHAVIOR WITHIN MARKETS. THE ORAL EXAM VERIFIES THE STUDENT'S ABILITY TO IDENTIFY AND ARTICULATE THE CONNECTIONS BETWEEN THE ANALYTICAL RESULTS PRESENTED IN THE COURSE, AND TO PRESENT THEIR IMPLICATIONS FOR THE MARKET BEHAVIOR OF INDIVIDUALS AND INSTITUTIONS.
Texts
COURSE NOTES ON ALL THE TOPICS PRESENTED DURING CLASSES WILL BE DISTRIBUTED TO STUDENTS.
More Information
NONE.
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