Economics of Financial Markets.

Catalog description

Study and critical analysis of economic theories of financial markets to include rational expectations, the efficient markets hypothesis, roles of time, uncertainty and information in economic transactions, risk aversion in the context of utility maximization and portfolio choice theory, the Capital Asset Pricing Model and multi-factor asset pricing models, an introduction to behavioral finance, and an examination of financial instability and distributional effects of increasing financialization. Includes rigorous development of relevant theories and study of published empirical literature.