EC4024, Financial Economics Spring 2016

This is the course page for EC4024, Financial Economics, Spring 2016.


Module Outline

Turnitin Login Details

Data project guidelines

Data for data project (.xlsx format)

Take home exam

Lecture Notes & Readings

1. Introduction to the module.

What is the purpose of finance? Basics of valuation, how investors value firms, how firms take decisions to invest. An example from real estate finance.

2. How to read a balance sheet, what equity is, and isn’t, how leverage works, where money comes from. The role of leverage in the collapse of the Irish economy.

3. Sociology of Finance. What finance is when you're not looking

4. Contract theory and monitoring. Finance, convenants and ‘the law’. Burning bondholders and all that: why Parri Passu matters more than you do.

5. How Lombard Street works, theory of the dealer, and your very first real supply and demand curves. Stigum’s Money Markets, the economics of the dealer function.

6. Bond Markets: not all they are cracked up to be. Pricing, allocation and provenance of bonds. Bond markets and FX markets.

7. Zombie theories of finance. CAPM, APT, EMH. Acronyms you need to know and distrust deeply.

8. Finance, Innovation and Growth 1: Basics

9. Finance, Innovation and Growth 2: Refinements

10. Algorithmic Trading

11. Finance, Economics, and Bitcoin: Don't believe the hype.

12. Review.