- Docente: Gabriella Chiesa
- Credits: 8
- SSD: SECS-P/01
- Language: Italian
- Teaching Mode: In-person learning (entirely or partially)
- Campus: Bologna
- Corso: First cycle degree programme (L) in Economics and Finance (cod. 0893)
Course contents
The course offers a deep understanding of the basic principles and models in financial economics and their implications on the development and functioning of financial markets: i) risk allocation and management, price formation in competitive markets and information symmetry; ii) information production and aggregation in markets with differently informed participants.
Decision process under uncertainty
Expected utility theory (von Neumann e Morgenstern)
Risk attitude
Stochastic dominance
Analysis and applications
Risk Allocation (Risk Management) and asset pricing
Efficient portfolios and agent's choice
Market equilibrium: asset prices and yields (asset price models)
Prices and yield in general equilibrium
The real world of market frictions (transaction costs, incomplete information, contract limitations):
Introduction to market microstructure theory:
Liquidity, liquidity risk and prices' information content
How does the market function when participants are differently informed?
Why are some markets illiquid? Does market organization affect liquidity? Is there a role for intermediaries?
Recommended ReadingsAgliardi, E., G. Chiesa, Economia Dei Mercati Finanziari , Carocci editore, 2003; Cap.1, Cap.2, Cap.6
Office hours
See the website of Gabriella Chiesa