79033 - Asset Management

Academic Year 2021/2022

Learning outcomes

At the end of the course it is expected that the student will be able to analyze microeconomic and macroeconomic features connected to the topic of saving. As for the microeconomic aspects main models of the economic literature are presented and analyzed, both with certainty and uncertainty. As for the macroeconomic aspects the relations between saving, investment and financial markets in a close and in an open economy will be analyzed.

Course contents

1. Measures and theories of saving

2. Basics of choices in economics

Budget constraint

Indifference curves

Optimal choice

Income and substitution effects

3. Intertemporal choice

Budget constraint

Optimal choice and Euler equation

Interest rate and saving

Liquidity constraint

4. Multiperiodal models

Permanent income

Lifecycle model

Pension systems and saving

Saving with and without certainty


5. Uncertainty

Expected utility

Risk aversion

Optimization with uncertainty

Uncertainty and annuities markets



Mankiw, D., Macroeconomia, Cap. 3 (Il consumo), Zanichelli

Blanchard, Macroeconomia, Cap. 3 (Aspettative, consumo e investimento), Il Mulino

Guiso e Terlizzese, Economia dell'incertezza e dell'informazione, Cap. 6 e 7, Il Mulino

Jappelli, T. e L. Pistaferri, Risparmio e scelte intertemporali, Cap. 1 (Il Mulino)

Romer, D., Advanced Macroeconomics, Cap. 7.

Teaching methods

Class lectures and excercises


Assessment methods

A final written examination with three questions. Time 1.30 hrs

Office hours

See the website of Carlo Mazzaferro


Decent work and economic growth

This teaching activity contributes to the achievement of the Sustainable Development Goals of the UN 2030 Agenda.