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| Semester | fall semester 2022 |
| Course frequency | Every fall sem. |
| Lecturers |
Yvan Lengwiler (yvan.lengwiler@unibas.ch, Assessor)
Heinz Zimmermann (heinz.zimmermann@unibas.ch) |
| Content | This course provides an in-depth treatment of selected topics at the frontier between macro and financial economics. The course includes a self-study part based on audio-animated slides, and in-class meetings with in-depth discussions of the topics and selected papers. |
| Learning objectives | The main goals of the lecture are to understand - the allocation of resources along the time axis: How much should an individual save? Is there an optimal amount of saving – an optimal capital stock – for the economy as a whole? Can an economy save too much? How are interest rates related to growth? Can interest rates be “too low”, and what are the consequences? We discuss the role and the determinants of interest rates – for individual households and the economy. - the role of financial assets in the allocation of risk: Risk averse individuals command a premium for holding risky assets. How can the riskiness of an asset (stock, bond, project) be operationalized, and how is it related to the risk premium? How can assets be priced without using risk premiums? The state preference model provides interesting insights to both questions: the pricing of cash-flows using stochastic discount factors (SDF) in general markets, and the no-arbitrage principle in complete markets which can be used to price options and many corporate securities. |
| Bibliography | There is no official textbook. There are audio-augmented slides for each part of the self-study part of the lecture; they are put on ADAM sequentially one or two weeks in advance. The four papers which are discussed in the in-class meetings (see Link "Further Information" below) are put on ADAM in advance. Complimentary reading is encouraged – references to key papers and books can be found in the lecture notes, and more recommended readings are available on request. |
| Comments | The course is organized as a combination of in-class meetings and self-study, plus Q&A contact windows with the instructors in zoom. - In-class meetings are held for the introductory sessions for each topic (ITA, APR), and the discussion of selected (specifically: 4) papers. In-class participation is required. (Occasionally, a specific topic is presented.) See the Time Schedule which you find following the link "Further Information" below. - Self-study is based on audio-augmented ppt-slides which covers the basic material of the lecture. The slides are uploaded 1-2 weeks in advance. We highly recommend study or discuss the topics in small groups. |
| Weblink | Further Information |
| Admission requirements | Basic mathematics and statistics are required, e.g. derivatives, expansions, vari-ances and covariances, linear regression. Additional material includes standard bachelor micro- and macroeconomics, e.g. indifference curves, production functions, substitution and income effect, … Special knowledge in financial economics is not required, although advantageous. We assume that a basic course in financial markets or financial management (e.g. investments) has been taken. |
| Course application | Registration: Please enrol in the Online Services before the course starts. EUCOR-Students and students of other Swiss Universities have to enrol at the students administration office (studseksupport1@unibas.ch) within the official enrolment period. In order to get access to ADAM in time, it is best to enrol before the course starts though. Enrolment = Registration for the exam! |
| Language of instruction | English |
| Use of digital media | No specific media used |
| Interval | Weekday | Time | Room |
|---|---|---|---|
| wöchentlich | Tuesday | 10.30-12.00 | Wirtschaftswissenschaftliche Fakultät, Seminarraum S15 HG.31 |
| Comments | The course is organized as a combination of in-class meetings and self-study, plus Q&A contact windows with the instructors in zoom. |
| Modules |
Basic Module: Advanced Topics in Economics (Master's Studies: International and Monetary Economics) Module: Fundamentals in Finance and Money (Master's Studies: Finance and Money) Module: Selected Subjects of Economics and Jurisprudence (Master's Studies: Actuarial Science) Module: Specific Electives in Finance, Controlling, Banking (Master's Studies: Business and Economics) Specialization Module: Finance, Controlling and Banking (Master's Studies: Business and Economics (Start of studies before 01.08.2021)) |
| Assessment format | main lecture exam |
| Assessment details | The course is worth 6 ECTS credit points. Grading is based on a 90-minutes written exam at the end of the lecture. The exam is open-book (no electronic devices permitted). Date of the exam: 17.01.23; 10:15-12:05. WWZ S15: A-J; WWZ Audi: K-Z. The repeat exam will be held on 07.02.23; 12:30-14:15. You will receive the rooms for the repeat exam by mail. |
| Assessment registration/deregistration | Reg.: course registration, dereg: cancel course registration |
| Repeat examination | one repetition, best attempt counts |
| Scale | 1-6 0,1 |
| Repeated registration | one repetition |
| Responsible faculty | Faculty of Business and Economics , studiendekanat-wwz@unibas.ch |
| Offered by | Faculty of Business and Economics |