skip to content
 

MPhil in Finance and Economics - Optional Modules

Optional Modules


  • F500 : Empirical Finance

    This course is an introduction to some major topics in empirical finance. It aims to endow the student with an understanding of the current issues, methods, and conclusions of empirical research on financial markets. The focus is primarily on equity markets. There will be an emphasis on empirical results and their interpretation. Econometrics required background.

    Course details

  • F510 : International Finance

    The aim of the course is to introduce students to classical and emerging issues in international finance, covering both modelling and empirical issues. Topics include international financial integration, risk and international arbitrage, carry trade, micro-structure of foreign exchange market, currency crises and contagion, sovereign risk, default and international borrowing.

    Course details

  • F520 : Behavioural Finance

    In this course we examine how the insights of Behavioural Finance complements the traditional paradigm and sheds light on the behaviour of asset prices, corporate finance, and various Wall Street institutions and practices. Behavioural Finance combines behavioural and cognitive psychological theory with conventional finance to provide understanding how people make financial decisions. It represents a collection of different approaches which seek to explain the existing findings and puzzles. This typically involves relaxing the assumption of fully informed and rational agents.

    We start by briefly reviewing the efficient markets hypothesis, rational choice and expected utility theory. We will aim to understand observed deviations from the predictions of the efficient market hypothesis with the goal of providing better insights into the functioning of financial markets. We will consider alternative models of decision making, in particular Prospect Theory and the distinction between risk and Knightian uncertainty. We will then consider evidence from psychology on the biases that arise in individual decision-making and in particular the role of herding and investor sentiment. We review recent research on limits to arbitrage.

    Course details

  • F530 : Venture Capital in the Innovation Economy

    The course explores the political and economic context from which professional venture capital has evolved and evaluates the distribution and correlates of investment returns to venture capital. Lectures explore the historic role of technological innovation in driving economic development and the complementary contributions of the state and of financial speculation to mobilizing resources for investment in the development and deployment of innovative technologies.

    Course details

  • F540 : Topics in Applied Asset Management

    This course will provide a detailed understanding of the main issues in applied portfolio design and related topics in practical asset management and risk management. We first consider how to overcome the problems with the use of mean variance methods, which are industry standard. A range of alternative modern approaches will then be discussed. We will examine the role of the predictability in both expected returns and volatility for position sizing, the use of leverage, managing risk through vol targeting, directional prediction, volatility timing, the use of quantile and expectile regression methods and finally the importance of recognising regimes of predictability. The practical focus will be on equity markets but we will also consider FX and futures markets while studying carry and momentum strategies to some degree.

    Course details

  • E101 : Applied Microeconomics

    The focus of this course is on using both theory and data to answer interesting and policy relevant questions in applied microeconomics. The questions are drawn from topics in applied microeconomics, including research in taxation, social insurance and labour markets. The focus is on individual behaviour and the role of government. The aims of the course are:

    1. To provide a framework on individual behaviour that can be used to think about the effects of policy
    2. To use that framework to analyse the effects of taxation and social insurance
    3. To provide the empirical tools to relate the theoretical framework to what we observe in the data
       

    Course details

  • E200 : Principles of Macroeconomics I

    The purpose of this course is to introduce you to major questions and theories in neoclassical economics. The goal is to develop the “tools and tastes” necessary to understand the main models of economic growth and business cycle. First, it discusses the Solow-Swan model with exogenous technological progress and savings decision. We analyse the equilibrium of the model and the comparative dynamics around the steady state. Second, we study the microfoundation of consumption and then we study the business cycles phenomena and set up a simple model, which can generate some business cycle facts. Finally we look deeper into investment theory.
    Course details

  • E201 : Applied Macroeconomics

    The aim of this course is twofold: First, it will introduce students to structural VARs, and related the concept of structural to identification more broadly. In addition, the students will obtain the computational tools to analyse structural VARs themselves using mathematical softwares (primarily Matlab). Second, the course will go through applied macroeconomic theory and analyse the effects on monetary and fiscal policy, and how the policy effectiveness are altered when the economy is in a liquidity trap.
    Course details

  • S140 : Behavioural Economics

    This course offers an introduction to the behavioural approach to economics. Among the topic covered are behavioural game theory, intertemporal decision making, neuroeconomics, cognitive biases, decision-making heuristics and addiction. The course includes both theoretical and empirical material, but a recurring theme is the importance of experimental findings both in the laboratory and in the field.

    Course details

  • S150 : Economics of Networks

    The course introduces students to the economics of networks. This area of research has emerged in the last two decades and it has introduced a set of tools for economists to incorporate network structure in the analysis of individual behaviour and economic outcomes. Topics covered include the formation of networks, the provision of local public goods, coordination, learning, trading, and financial networks. A central focus of the course is the interplay between theory and experiments.

  • S301 : Applied Econometrics

    This course has two components (i) empirical strategies for obtaining causal estimates, including randomized experiments, difference-in-difference, regression discontinuity, selection correction and instrumental variables and (ii) panel data estimation including fixed and random effects and dynamic panel data models. The focus is on empirical rather than purely theoretical issues.

    Course details