Markets and Prices: Analysis and Forecasting

Catalog description

Students learn how prices are determined and learn how to analyze and forecast how prices change as the underlying conditions change. This involves learning those tools that are used to analyze and understand how commodity markets work and how prices are determined. The class mixes theory with practical knowledge and examples, and aims to create a balanced representation of the tools used in market analysis. The students learn how to find data, manipulate it and analyze and apply these skills to test the validity of simple economic models, to forecast commodity prices, to understand market trends and learn the use of derivative instruments to manage price risk. One objective of this class is to improve the understanding of economic modeling and to increase the familiarity of students when applying statistical functions and regression analysis to solve applied problems. These core competencies rely on previous knowledge of basic statistic tools and data manipulation. In the process, students will learn to analyze market fundamentals and better understand those forces that affect prices. This will also help them better understand supply and demand and the ability of market participants to adjust to changing conditions.