Major corporate decisions from the perspective of the firm with an emphasis on the interaction of the firm with financial markets: quantitative project evaluation for investment, choice between borrowing and issuing stock, dividend policy, organizational form (for example, mergers and acquisitions). Introduction to financial markets: asset pricing, issuing stocks, analyzing financial performance using relative value tools, and options. Pre-requisites: ECON372 or ECON205D and ECON208D. One course.
Integrates micro and macro economics with topics in finance. Utility maximization within mean variance framework for portfolio analysis and capital asset pricing model. Corporate valuation and discounted cash flow analysis. Capital structure and principal-agent problem will lead into a discussion of the Efficient Markets Hypothesis and underlying assumptions. Market pricing, forecasting, and financial crises. Pre-requisites: ECON101 (or ECON21 and ECON22); STA111, or 130, or 230, or 210; ECON205D, or MATH212 or MATH222, or MATH216. Students may not enroll if ECON168 already completed.
Bridges gap between economic theory and real world data by giving students guided experience in answering real research questions using real data, drawing examples from the literature. Oral presentations and written summary/critiques of published papers in a workshop setting. Students work with cross-section and panel data sets, with the aim of learning to manage such data and give credible answers to research questions by coping with problems such as omitted variable and selection bias, unobserved differences across agents, and endogeneity.
Duke in London Summer Course. Financial markets and the role of investment banks as intermediaries. Divisions and functions within investment banks: sales and trading, corporate finance, research and wealth management. Aspects of asset pricing and corporate valuation. Impact of current events on financial markets. Intended primarily for sophomores and juniors interested in a career in financial markets. Consent of instructor required. One course.
Financial markets and the role of investment banks as intermediaries. Divisions and functions within investment banks: sales and trading, corporate finance, research and wealth management. Aspects of asset pricing and corporate valuation. Impact of current events on financial markets. Intended primarily for sophomores interested in a career in financial markets. Consent of instructor required. One course.
Uses popular and accepted theories of human behavior from the fields of psychology and decision-making to characterize some prevalent features of irrational behavior in financial markets. Includes discussion of typical errors made by financial market participants as a result of behavioral biases, and examination of the extent to which irrationality can affect financial markets at the aggregate level (“bubbles”), how long irrationality may persist, and what factors will eventually cause these bubbles to burst (“crashes”). Instructor consent required. Pre-requisite: ECON205. One course.
Cooperative and non-cooperative game theory with applications to trading, imperfect competition, cost allocation, and voting. Pre-requisite: ECON205D. One course.
Students introduced to articles of recent research in international trade and investment. Students will engage with literature, rewrite to make more accessible to classmates, evaluate it and propose how to extend it. By end of course, students will complete a pilot project, which may be extended to an honors thesis or a masters project. Pre-requisites: ECON205D and 210D. One course.
Behavioral economics couples scientific research on the psychology of decision making with economic theory to better understand what motivates investors, employees, and consumers. An examination of topics such as how emotion rather than cognition determines economic decisions, “irrational” patterns of how people think about money and investments, how expectations shape perceptions, economic and psychological analyses of dishonesty by presumably honest people, and how social and financial incentives combine to motivate labor by everyday workers and CEOs alike.