Essentials of Financial Economics
| Code | School | Level | Credits | Semesters |
| ECON4058 | Economics | 4 | 15 | Autumn UK |
- Code
- ECON4058
- School
- Economics
- Level
- 4
- Credits
- 15
- Semesters
- Autumn UK
Summary
The primary aims of the module are:
- To analyse the role of financial markets in the presence of frictions
- To examine the implications of financial frictions for corporate and consumer finance
- To examine the impact of financial shocks on the economy.
Topics studied in the module include:
Saving: with a focus on how agents make intertemporal decisions about their savings and wealth accumulation
Saving puzzles and Household Portfolios: Focus: credit markets & credit markets imperfections, and why do households hold different kinds of assets
Asset Allocation & Asset Pricing: Focus: intertemporal portfolio selection, asset pricing and the equity premium puzzle
Bond markets and fixed income securities
The term structure of interest rates
The role of behavioural finance in explaining stock market puzzles.
Target Students
Available for PGT students studying MSc Financial Economics or for PGR Economics students.
Classes
This module is delivered through a series of lectures and seminars.
Assessment
- 100% Exam (2-hour): Exam
Assessed by end of autumn semester
Educational Aims
The module aims to enable the participants to develop: Digital capabilities through the use of library e-resources to help access primary resources, such as journal articles.Become familiar with software such as presentation and file sharing software.Reflection of understanding of material through formative feedback.Learning Outcomes
On completing this module students should be able to:
A2 Apply core economic theory and economic reasoning to applied topics
A6 Extensive knowledge and skills in specific specialisms in economics
B1 Work with abstract concepts and in a context of generality
C4 Understand the context in which a problem is to be addressed
D2 Communicate effectively and clearly in written and oral formats