First Level Degree / Bachelor’s in

“Economics and Finance” (CLEF) University of Bologna, Italy

This document contains the syllabi of all subjects of the degree course as of February 2015.Important: all information is temporary and is therefore subject to change.

The Programme DirectorProf. Giacomo Calzolari

First year

33507 - CRASH COURSE IN MATHEMATICS

30 class hours, 0 credits

Learning outcomesA very basic knowledge of algebra and logic is required. Once this is given, we will illustrate the theory of sequences and series, in order to better understand the nature of numbers. Discrete combinatorics, finite probability and introduction to limits will be the main outcomes. Summing up, a short introduction to the elementary theory of numbers and discrete mathematics.

47736 – ACCOUNTING

Prof. Federica Farneti60 class hours, 8 credits

Learning outcomesThe aim of the course is to provide knowledge on accounting and, more specifically, on financial accounting. At the end of the course, students will be able to understand financial statements and the fact that these are the product of the financial accounting process. They represent the means of communicating economic information about the organization to stakeholders who want to make decisions and inform judgments about the entity's financial position. In addition, students will be able to understand some fundamental financial statement analysis concepts and tools. Furthermore, students will develop knowledge on non-financial information. To integrate the skills and knowledge on sustainable reporting, students will examine and use guidelines for sustainability reporting and its measures for guiding organizations to a more sustainable future, understanding their economic, environmental and social impacts (as well as related consequences). Finally, students will be introduced to the concepts of Managerial Accounting.

Course contentsThe course will explore the following topics:

1. Introduction, syllabus, schedule and exam. Overview on Accounting: Financial Accounting, Social and Environmental Accounting, Managerial Accounting and Auditing. Chapter 1

2. Financial statements and accounting concepts and principles. Chapter 2

3. Fundamental interpretations made from financial statements data: description of some of the basic analytical tools that allow financial statement users to make fundamental interpretations of a company's financial position and results of operations. Chapter 3 and 9

4. The bookkeeping process and transaction analysis. Chapter 45. Financial statement analysis. Chapter 116. Introduction to Social and Environmental Accounting: extended performance reporting (such

as sustainability reporting). Additional material will be provided.7. Managerial Accounting and Cost-Volume-Profits Relationships. How, through Managerial

Accounting, economic and financial information are employed to support the management decision-making process Chapter 12

Readings/BibliographyMarshall, McManus and Viele, (2014), Accounting. What the numbers mean, 10th Edition, McGraw-Hill International Edition. A short version of the book might be bought on line. (Details will be given on the first day of class). Further material might be provided.

Teaching methodsThe teaching approach is based on a combination of lectures, interactive classes, seminars, exercises, discussion questions and case studies.

Assessment methodsGroup Class presentation

This part of the assessment involves students working in-group to research, prepare and present to the class on a range of different topics. The class presentation should be undertaken in PowerPoint format; a hard copy of your slides and the related report, should be submitted to the lecturer for assessment purposes, as well as an electronic copy, by the 3 of December 2014. The related report must be maximum 1500 words, further than tables. This examination is worth 6 points (1/5) of the final mark of this course.

End of term examinations

A final two-hour examination will be held at the end of each term and will consist of a number of essay questions, multiple choices questions related to different elements of the syllabus, as well as exercises. At the end of each term, the term examination is worth 12 points (2/5) of the final mark. During class, a potential list of essay questions will be anticipated.

For students that will not attend the course there will be the option to sit a written four-hour exam, worth 30 points.

Teaching toolsBooks, exercises, case-studies, discussion points, etc.

Office hoursSee the website of Farneti Federica

75660 - CALCULUS AND LINEAR ALGEBRA

Prof. Alessandra Giovagnoli, Prof. Sander Dommers90 class hours, 12 credits

Learning outcomesStudents will be able to master a number of mathematical techniques regarding functions and matrices, useful in economics and finance. Of particular interest are:

1. Being able to describe the behavior of a function using graphs2. Having a full understanding of the meaning of limits, continuity, differentiation and its

connections with optimization.3. Understanding integration and its relation with areas.4. Understanding infinite sums.5. Understanding how to approximate a function.6. Dealing with linear transformations in n-dimensional spaces.

Course contentsThe course is organized in two parts, the Module in the first Semester (60 hrs) and the Module in the second Semester (30 hrs).In the first part, the topics covered are the following: Functions of one variable, Derivatives, Graphs, Integrals, Sequences, Series, Functions of several variables. In the second part topics are Linear Algebra, namely Vectors, Matrices, Determinants, Linear Systems, Eigenvalues.

Readings/BibliographyA reference textbook is "Calculus: a Complete Course" by Robert Adams and Christopher Essex. Publisher: Pearson Education Canada; 8th edition (2013).A very detailed list of the topics on which the exam questions are based will be provided at the end of each part of the course.

Teaching methodsClass Lecturing with the aid of blackboard and chalk, an overhead projector, and a computer. Each week, the teacher will set some exercises as homework for the students. The students are requested to get a copy of the book, as most of the material for the exercises of the course is to be found in it.

Assessment methodsThe exam consists of a set of written questions. The mark is out of 30 points, and the minimum required to pass is 18/30. Only if necessary, the written part will be integrated by an oral exam.Students are allowed to bring one copy of the book and personal notes in the exam. NO electronic devices.

Teaching ToolsStandard lectures

Links to further informationhttp://www.unibo.it/Faculty/default.aspx?UPN=alessandra.giovagnoli%40unibo.ithttp://www.dm.unibo.it/~sander.dommers/calculus/index.html

Office hours: See the instructor’s web page.69065 - ECONOMIC HISTORY

Prof. Patrizia Battilani, Prof. Vera Negri60 class hours, 8 credits

Learning outcomesThe course aims at providing students with an up-to-date understanding of the main aspects and trends of the world economy during the 20th and early 21st centuries. At the end of the course, students should understand the origin of the most important economic institutions and the features of the economic cycles so far experienced by the world economy. Topics addressed in more detail will include the failure of the command economies, the construction of the European Union, the evolution and transformation of financial systems, the globalization.

Course contentsThe course is organized in two parts, the first taught by Vera Negri Zamagni and the second by Patrizia Battilani. In the first part, students will be offered a general overview of the evolution of the world economy across the XIX and XX centuries, with special focus on Europe. The topics covered are the following:

1. The pre-industrial economy and the preparation of the industrial take-off2. The British industrial revolution and the process of imitation3. The second industrial revolution, the rise of the USA and the gold standard4. World War I and its effects5. The 1929 crisis and World War II6. Reconstruction and the new international economic order: Bretton Woods, IMF, Gatt,

World Bank and the Marshall Plan7. The golden age (1950s to 1973)8. The process of economic integration in Europe9. The return of instability and the “financialization” of the world10. New protagonists: the rise of Asia.

In the second part, students will have the opportunity to deepen their understanding of specific issues, including the impact of the three waves of globalization on world economy, the role of state intervention in economic development, the relationship between economic growth and financial systems. The topics covered are the following

1. The first globalization2. The second e third globalization3. The rising and fall of state-owned enterprises4. The emergence of competition laws5. The building of modern welfare systems6. The developing of National Financial System7. The capitals of capital: the rise of stock exchanges8. Financial innovations and deregulation over the last decades

Readings/Bibliography

For the part taught by prof. Vera Zamagni: R. Cameron, L. Neal, The concise economic history of the world, OUP, 2003, from ch. 5 onwards. For the part taught by Patrizia Battilani, a reading list will available at the beginning of the course.

Assessment methods The exam - written, with six open questions - aims at evaluating the skills and the critical abilities developed by students. It is not possible to bring books, personal notes or electronic devices to the exam.

Office hoursSee the website of Patrizia Battilani and Negri Vera

59691 - MACROECONOMICS

Prof. Falvio Delbono60 class hours, 8 credits

Learning outcomesThe course aims at providing students with a solid and Comprehensive background to understand the most important macroeconomic issues as the ones currently met in the policy debates. At the end of the course, participants will be able to grasp and analyze macroeconomic phenomena (like growth, inflation, unemployment) in the short and in the long-run, the working of monetary and fiscal policy, the pros and cons of European integration and the eurozone.A strong analytical approach will be at the basis of all learning activities. Also, there will be frequent reference to policy events and to real-world examples.

Course contents1. Introduction and policy issues2. National Accounting3. Growth4. Aggregate Supply and Demand5. The Phillips Curve6. Unemployment7. Inflation8. Income and Spending9. The IS-LM Model10. The open economy11. Consumption and Saving12. The monetary market13. The Central Bank14. Basic Finance15. National debt16. Recession and depression17. The eurozone

Readings/Bibliography The textbook is R. Dornbush, S. Fisher, R. Startz, Macroeconomics,McGraw-Hill, Twelfth Edition, 2014 (chapters 1-18, 20-21)Additional material is available in Campus on my page

Teaching methodsTraditional front teaching

Assessment methodsWritten exam made of exercises and questions (90 minutes)

Office hoursSee the website of Delbono Flavio

37293 - MICROECONOMICS

Prof. Matthew John Wakefield60 class hours, 8 credits

Learning outcomesAt the end of the course students should understand the principles and methods of economic, and specifically microeconomic, analysis. They will have been introduced to the concept of economic rationality as it applies to individuals and firms. Topics addressed in more detail will include the form of utility and production functions, individuals' consumption and labour-supply decisions, and the analysis of how price and quantity are set under different market structures and how these market structures influence the economic efficiency of market outcomes. Implications for the behaviour and organization of firms will be highlighted throughout.

Course contentsTopics addressed should include:1. Introduction to the market and the concept of economic rationality

2. Consumer Theory- The budget- Preferences and Utility- Choice- Individual demand (for goods and services)- Labour supply

3. Market equilibrium- Market demand- Market equilibrium and the implications of taxes on consumption

4. Producer Theory- Technology

- Profit maximisation- Cost minimisation- Firm supply in a competitive market- Industry supply in a competitive market- The implications for supply of non-competitive market structures: Monopoly and Oligopoly

5. The concepts of Externalities and Public Goods may also be introduced.

Readings/BibliographyThe text book for the course will be:Varian, Hal R., Intermediate Microeconomics: A Modern Approach, (9th international student edition), published by WW Norton & Co, (ISBN: 978-0-393-92077-2).It is strongly recommended that students have access to a copy of the textbook. There is also an accompanying exercise book which students may find useful (though it is not required reading). This exercise book is:Bergstrom, Theodore C. and Hal R. Varian, Workouts in Intermediate Microeconomics for Intermediate Microeconomics and Intermediate Microeconomics with Calculus, 2014, W.W. Norton & Co.: New York, London, ISBN:978-0-393-92261-5

Teaching methodsTraditional front teaching.

Assessment methodsFinal written exam of about one and a half or two hours.Mid term exam(s)/tests FOR CURRENT (1st year) STUDENTS ONLY (students from earlier years must take the full exams).For students taking the mid-term exams, the final mark for the course will be an average of the marks in the two "partial" exams. Only students with a sufficiently high mark in the first mid-term exam will be admitted to the second partial: other candidates must proceed to the full exams.

During exams (mid-term or full exams) students will NOT be allowed to use materials such as: textbooks, lecture notes/slides; any written notes; web-enabled or data storage devices such as computers (laptops or tablets), or smartphones. Candidates found with such items will be removed from the exam and their work will not be marked.

The exams will contain a mixture of multiple choice (and possibly "fill in the blanks") questions, and computational/open exercises. The division of marks between the different types of question will be indicated on exam papers where this is appropriate.The content and structure of exam questions is intended to assess familiarity with the material covered in the course lectures, and, in particular, to assess understanding of the theoretical content of the course. The nature of exam questions will closely follow examples covered as exercises during the course, and discussed in lectures/tutorials.

Candidates will be required to enroll for exams via the University's electronic service (currently AlmaEsami). Exam marks will be published via the University's electronic service (AlmaEsami).After the exam students will be entitled to see their script by attending the lecturer’s office hour.

Any marks in excess of the minimum pass grade (18 out of 30) will be automatically registered (“verbalizzato”) by the course lecturer after a specified amount of time (which will be communicated to those who attend the exam) has elapsed.

Office hoursSee the website of Wakefield Matthew John

65064 - PRIVATE LAW

Prof. Enrico Al Mureden45 class hours, 6 credits

Learning outcomesStudents will engage with the fundamental issues of Private Law, with particular focus on legal obligations and contracts, in order to better understand the means through rights over goods (owned by third parties) are acquired, as well as the rendering of services by third parties. Particular attention will be paid to property law, legal obligations, contracts and tort law.The main purpose of the course is to provide students with a thorough knowledge of the core concepts of Private Law, not only from a national perspective but also from the perspective of the harmonization of European Union Law. The aim of the course is to train students to gradually develop a systematic knowledge of Private Law terminology and logic, in order for them to handle Private Law issues and cases efficiently.

Course Contents:

Key features of European Union private law The historical evolution of European private law European Private Law and the comparative method The role of the conflict of laws in European private law Competence and European private law Language and terminology European private law by directives: approach and challenges The European Court of Justice as a motor of private law European contract law: the Common Frame of Reference and beyond ; The way forward in European consumer contract law: optional instrument instead of further

deconstruction of national private laws Commercial contracts and European private law European tort law: features of a diverse landscape European Union property law; Information obligations and withdrawal rights Unfair contract terms Unfair commercial practices and European private law Consumer sales and associated guarantees Product liability

Commercial agency in European Union private law EU competition law and European private law Non-discrimination and European private law Financial services in European Union private law

Readings/BibliographyCHRISTIAN TWIGG-FLESNER, The Cambridge Companion to European Union Private Law, Cambridge, 2010.

Teaching methodsStudents' learning will be encouraged by continual references to case law

Assessment methodsStudents who satisfy the attendance requirements will be allowed to take exams in all sessions.

Teaching toolsIn order to facilitate learning, some of the topics covered in class will be supported by power point presentations. Other supporting materials (legal cases, documents, legal texts) will be available to students on the teacher’s website.

Office hoursSee the website of Enrico Al Mureden

65065 - PUBLIC LAW

Prof. Daniele Senzani68 hours, 9 credits

Learning outcomesThe aim of the course is to provide students with the fundamentals of public law

Course contents

- Introduction to the course. Law and legal system. Juridical systems. Public law and private Law.- The State. The constitutive elements of the State (people, territory, sovereign power).- The Italian legal system.

- The international legal order.

- European Union law. Profiles of European Constitutional Law. Freedom of the Treaty (TEU – TFEU); and the protection of competition (outline).

- Forms of State and forms of government. Classification of forms of State based on relations sovereignty-people (Absolute State, Liberal State, Socialist State and Constitutional State) and sovereignty-territory (Unitary State, Regional State, Federal State).

- Classification of forms of government (Constitutional monarchy, Presidential system, Parliamentary system, Semi-presidential system). In particular: the parliamentary form of government in Italy.

- The sources of law. Source, disposition, rule.

- The Constitution. The sources of economy law. The individuals and legal situations subjective. The inviolable rights of the person and the fulfillment of the fundamental duties of political, economic and social solidarity. The principle of equality. The freedoms: positive and negative freedom (outline). Civil relations: rights and duties. Ethical and social relations and social groups. Economic relations. Political relations.

- The juridical situations: rights and legitimate interests.

- The constitutional amendment and constitutional laws. Amending article 81 Const. (public budgets).

- The process of constitutional revision and for constitutional law. Limits to the constitutional amendment. The constitutional revision in practice.

- The Community sources. The TEU/TFEU. Legislation. Directives and Regulations. Non-legislative acts. The supremacy of Community law over national law. The distribution of competences between Community and Member States. The regional law and Community law. Economic principles and the effect on local authority.

- The primary sources. Laws of the State. The reserve law.

- The legislative process of the formation of law. The preparatory phase (legislative initiative). The deployment phase. The legislative Committees. The additional phase efficacy.

- Measure having the force of law. Force of law. The legislative decree. Legislative Decree. Other acts with the force of law and the autonomy sources.

- Regional laws. Legislative power of the regions.

- Regulations of Chambers; Regulations of other constitutional bodies.

- The referendum as a source of law and as an instrument of direct democracy.

- Regulations such as secondary sources of law. The discipline of the executive regulations (implementing, for implementation, integration, independent, organization, deregulation - the process of training). Adoption procedure of the executive regulations.

- Regulation acts (acts of independent authorities).

- The regulations of the regions and local authorities. The power to legislate of Municipalities, Provinces, University and other public entities.

- The custom and the constitutional convention.

- Criteria for resolution of the antinomies: criteria of importance, chronological, expertise and specialty. The shortcomings of the legal system: the interpretation and application by analogy. The teleological criteria. European Law and national law: coordination, supremacy, automatic transposing order in the Member State Law.

- Electoral system and electoral body. Constitutional principles in terms of voting. Electoral Systems. Institutions of direct democracy.

- Parliament. Parliament as a forum of political representation. The bicameral. The joint sitting of Parliament. The internal organization of Parliament. Autonomy of Houses. The role of the parliamentary: representation of the Nation and no binding mandate. Prerogatives of parliamentary. The allowance of the members of Parliament. Decision rules. The parliamentary immunity. The law formally. Budget law and fiscal consolidation. The cognitive activity of each House. The inquiries. Amnesty and pardon laws. The function relating the form of government. The functions of information and control. Law on approval of budgets and accounts. The Court of Auditors' control. The deliberation of the state of war. The ratification of international treaties authorized by law. The functions relating the EU.

- The Government. Composition: the Presidency, Council of Ministers, the Ministries.

- Auxiliary Bodies: The National Council for Economics and Labour; Council of State; The Court of Auditors. The confidence relationship between Parliament and Government. The formation of the government. The motion of no confidence. The responsibility of the Government. The relationship between Government and other constitutional bodies.

- The President of the Italian Republic in the constitutional order. Election of the President. Term of office and termination of the office. Incapacity and substitution. Duties relating to the legislature. Duties relating to the executive. Powers relating to the judiciary. Irresponsibility of the President and ministerial countersignature. Classification of presidential acts.

- Jurisdiction. The constitutional principles. The judicial function. The autonomy and the independency of the Judiciary branch. Irrevocability of judges. Responsibility (disciplinary, civil, criminal). Composition of Judicial branch. The High Council of the Judiciary and the Court of Cassation. Administrative jurisdiction. The bodies of administrative jurisdiction. Other jurisdictions (outline).

- The constitutional justice and the Italian Constitutional Court. Constitutional control. Composition and functions of Constitutional Court.

- Constitutional legitimacy judgment. Conflicts arising from allocation of powers of the State and those powers allocated to State and Regions, and between Regions. Impeachment of the President of the Republic. Judgement of admissibility of abrogative referendum. Types of decisions of the Constitutional Court.

- Regions. The Local Governments. Form of government. Legislative, regulatory and statutory power. Administrative autonomy. Revenue and expenditure. Autonomy. Financial autonomy. The local autonomies.

- The public administration. Administrative function and administrative activity. The constitutional principles of administrative organization and administrative activity. The respect of European Union law principles. The autonomy, the autarchy and self-defense. Administrative decentralization and the principle of subsidiarity. Administrative organisation. Legal capacity and the bodies. The competence. Organisational relations. Subjectivity public. The bodies and instruments of the function. The administrative pluralism. Legal persons in public law. State administrations. Territorial administrations. The State company, bodies governed by public law, public enterprises. Independent authorities.

- The Economic Constitution. Administration and economic relations. Private-sector economic initiative. Private property.

- Essential public service, monopoly and operation of services of general economic interest. The competition and market rules. The principle of an open market economy and of free competition. Free movements. Privatization process.

- Administrative instruments. Public goods. Financial instruments. DEF. The law of stability. The budget and the profiles of reform. The financial autonomy of local authorities and the coordination of public finance.

- Administrative function. Administrative measures, acts, acts of negotiation, atypical activities. The negotiation activity. Measures and general characteristics. The legal position. The administrative discretion.

- The administrative procedure. Constitutional and general principles. The charge of proceedings. Stages of the proceedings. The conference service. The procedural agreements. Participation and right of access. The silence of public administration. The effectiveness and implementation of administrative measures.

- The pathology of the proceedings. The vices of administrative acts. The self-defense decision making. The remedies.

- The concept of administrative justice. General principles and judicial bodies (ordinary judge and administrative judge). Recourse to ordinary courts against the Public Administration. The administrative court and other specialized courts. The judicial protection against the Public Administration. The protection in administrative matters. Administrative appeals.

- The ratio of office and working relationships with civil servants. Rights and duty of the civil servant. The responsibility and judgments of responsibility. Legal status of the responsibility of public administration. Elements of responsibility. Civil, accounting, criminal and disciplinary responsibility.

Readings/BibliographyGiuseppe Franco Ferrari, Introduction to Italian public law, Giuffrè, 2008.Other readings will be recommended during the course.

Teaching methodsFrontal lessons.

Assessment methodsOral exam, whose aim is to verify the knowledge acquired, the understanding of the topics and reasoning abilities of the students. There will be mid-terms (only for attending students) and three total exam possibilities.To attend the exam, each student must sign up via AlmaEsami within the deadline. Those who cannot sign up must immediately (before the official closing of the subscription lists) inform the Programme Coordinator or Tutor of the problem. Deciding whether or not to allow not enrolled students to attend the exam is up to the teacher. The teacher will register the final mark on the date set and indicated in AlmaEsami.

Teaching toolsSlides.

Office hoursSee the website of Daniele Senzani

Second year

37296 - COMMERCIAL LAW

Prof. Alessandro Pomelli 60 class hours, 8 credits

Learning outcomes

At the end of the teaching activities, students will have a comprehensive understanding of the main institutions regulating corporations and firms, focusing on their basic characteristics and tasks. Furthermore, students will be able to acquire and grasp basic notions about all the different types of firms, consortiums and lobbies, in order to assess and verify how these organizations, which are widespread in the Italian Economic scenario, could be profitably used for the practice of the economic activity (principles, structures and organizations).

The International approach to the course sets the platform for a continuous comparative evaluation between Italian commercial law and Industrial legislation, versus the international directives on this very field (with a special focus on EU regulation on the subject). International agreements and basic concepts of commercial and industrial law will be tackled, taking into careful consideration the antitrust legislation, regulation of particularities and all creative activities, regulation of know-how and of technologies, as well as unfair competition and practices like dumping, misleading communication.

Course contents

1. Introduction: A Brief Account of the History of Italian and European Commercial Law.

2. Partnerships under Italian, European and United States laws.

3. Private Companies under Italian, European and United States laws with particular regard to formation, organizational changes, capital structure and fund raising, corporate governance.

4. Public Companies under Italian, European and United States laws with particular regard to formation, organizational changes, capital structure and fund raising, corporate governance, mergers and acquisitions.

5. Securities markets.

6. Mutual Companies.

7. Group of Companies.

8. Agency Problems, Conflict of Interests within Companies and Legal Strategies to address them.

Readings/Bibliography

- Kraakman, Armour et Al., The Anatomy of Corporate Law, Oxford University Press, 2nd Edition: Chapers 1 to 8.

- Whish and Bailey, Competition Law, 7th edition, Oxford University Press, 2012.- Presentations, readings and other materials as indicated in class at the beginning and during

the course.

Assessment methods

Written examinations in the form of mid-term exams and full exams. Mid-term exams contribute to the final grade by a third each to the extent that each of them is taken at the relevant dates and

passed with a grade not lower than 18. Full exams will be based on the whole course program and all the relevant materials (presentations, slides, textbooks and/or additional readings).

Office hours: Check the website of Alessandro Pomelli

75662 - DATA PROCESSING FOR ECONOMICS AND FINANCE

30 class hours, 4 credits

Learning outcomesOn completion of the course, students will have learnt how to write a report, as requested to a junior economic and financial analyst, and how to effectively describe it. They will earn essential abilities such as:

1. finding and organizing data, text-based and graphical information which will be used to write the report;

2. handle data and information;3. abstract and simplify complex problems;4. apply knowledge and skills to the solution of theoretical and applied problems in

economics and finance;5. design a report;6. rhetoric and strategy for writing and presenting a report;7. oral presentation skills.

All these competencies will provide solid grounds for many career paths such as in economic, financial and strategy consulting and for policy evaluations.

Course contentsThe instructors will be mainly professionals working in the consulting sector, experts in market analysis and reporting. They will explain students how to plan, design and deliver economic and financial reports.Students will play an active role and will be required to apply their knowledge in economics and finance, together with the specific skills of the current course. After choosing the topic from a list, they will prepare and write their own report and then deliver it in public seminars.

Readings/BibliographyClass material.

Teaching methodsTeaching will combine traditional lecturing by experts in economic and financial reporting, and students’ presentations to the class.

Assessment methodsEvaluation of students will be based on their written report (60%) and its oral presentation (40%).

Teaching ToolsThis is a “hands-on” course where students’ involvement is essential.

Links to further informationTBA

Office hoursTBA

75663 - ECONOMICS FOR FINANCIAL INTERMEDIATION

Prof. Giuseppe Torluccio60 class hours, 8 credits

Learning outcomesThe course aims to provide insights into and understanding of the major theories and practices related to financial intermediation, and the risk management issues currently in use in major banks around the world.

Course contentsThis course addresses the main issues related to financial intermediation and financial risk management, and provides the tools to analyze issues in asset pricing and market finance.The course ties together the mainstream topics of risk measurement and management with the downstream issues of the risk management process. While traditional risk management focused on a bank’s banking book (i.e. on-balance sheet assets and liabilities), modern risk management is concerned with both the banking book and the trading book, which mainly consists of off-balance sheet financial instruments.

Readings/BibliographySaunders, A. and M.M. Cornett Financial Institutions Management: A Risk Management Approach. (New York: McGraw Hill)

Teaching methods- lectures (6 hours per week);- self-study in computer labs (doing home assignments using Excel);- self-study with literature.

Assessment methodsTwo-hour written examination.

Teaching ToolsClass lectures, handouts and computer lab. Students are also expected to read financial journal articles (FT, WSJ, Bloomberg)

Further information Good command of methods of calculus, general probability theory and mathematical statistics are also required for the course.

Office hoursSee the website of Giuseppe Torluccio

75318 - FINANCIAL MATHEMATICS

Prof. Silvia Romagnoli45 class hours, 6 credits

Learning outcomesThe student will be able to understand, formalize and evaluate a complex financial transaction, distinguishing its primary components. A critical discussion on the evaluation techniques and the alternative procedures will make students completely awake on their ability in the financial field and represents the final goal of the course.

Course contents

Simple and Compound interest and discount Annuities certain Sinking funds and amortization Constitution of a capital Valuation of bonds in a no-arbitrage setting Term structure of interest rates Valuation of index-linked bonds: floater, reverse floater and swap The concept of risk: basic principles of immunization

Readings/Bibliography

- Capinski-Zastawniak, Mathematics for Finance, Springer- Janssen-Manca-Volpe, Mathematical Finance, Wiley

Contactssilvia.romagnoli@unibo.it

75368 - STATISTICS

Prof. Paola Bortot90 class hours, 12 credits

Learning outcomesAt the end of the course, students will have acquired knowledge of the main statistical techniques for exploratory data analysis and for inference of population parameters from random samples. The learnt techniques cover graphical tools, summary measures for single and multiple variables, estimation and hypothesis testing for Gaussian and Binomial populations. Students will also be able to implement the learnt procedures through the statistical software R. Skills to solve elementary probability problems will be developed.

Course contentsThe course program is organized in four parts as described below.

1. Descriptive Statistics

Graphical tools for data presentation. Frequency tables. Frequency distributions. Summary measures of position and dispersion. Two-way tables. Joint, marginal and conditional distributions. Independence. Association and chi-squared index. Linear dependence and correlation.

2. Probability Theory

Approaches to Probability Theory. Axiomatic approach to probability. Sets and Events. Conditional probability. Independent events. Bayes theorem and total probability theorem. Random variables. Mean, quantiles and variance. Discrete and Continuous Uniform distribution. Binomial distribution. Gaussian distribution. Independent variables. Sums of random variables. Central limit theorem and Law of large numbers. Chi-squared and t distributions.

3. Inferential Statistics

Random sampling. Parametric statistical models. Sampling distributions. Point estimation. Bias and mean squared error. Confidence intervals for the mean of a Gaussian population. Approximate confidence interval for a probability. Confidence interval for the difference between the means of two Gaussian populations. Approximate confidence interval for the difference of two probabilities. Hypothesis testing on the mean of a Gaussian population. P-value. Approximate test on a probability. Test on the difference between the means of two Gaussian populations. Approximate test for the difference of two probabilities. Approximate test of independence on a two-way table.

1. Computer programming

Some lectures will be held in the computer laboratory. Students will be introduced to the software R that will be used to apply the statistical techniques that they have learnt to real-life problems.

Readings/Bibliography

- Newbold, P., Carlson, W.L. and Thorne, B. (2013), Statistics for Business and Economics, Pearson-Prentice Hall.

- Lecture notes.

Teaching methodsTraditional lectures and computer laboratory sessions.

Assessment methodsWritten exam

Teaching ToolsR software

Links to further informationwww2.stat.unibo.it/bortot/default.html

Contactspaola.bortot@unibo.it

75664 - PUBLIC AND REGULATORY ECONOMICS

Prof. Emanuela Carbonara60 contact hours, 8 credits

Course description: This one-semester course covers basic issues in public finance and public policy, stemming from the design of tax and social insurance policies to federalism and the regulation of natural monopolies. The course tries to provide the theoretical foundations of optimal public policy, with emphasis on second-best theories. Empirical evidence in support of the theories will also be presented. Topics include incidence of taxation, income taxation, transfer and welfare programs, public goods and externalities, optimal social insurance, health markets.

Course Content:

1) What justifies public intervention in economics. Welfare economics2) Market failures: public goods and externalities3) The theory of collective choices: political economy and political decision making4) Income redistribution5) The welfare state.6) Social Security7) Health Care8) Expenditure programs for the poor

9) Taxation and Income Distribution10) Taxation and Efficiency11) Efficient and Equitable taxation12) Personal income tax and corporation tax13) Federalism and public finance14) Regulation: natural monopolies

Readings/Bibliography:

Rosen and Gayer: Public Finance, 10th edition (2013). McGraw HillOther readings will be indicated in class.

Two elective modules among the following:

Industrial OrganizationInternational TradeLabor Economics

59160 - INDUSTRIAL ORGANIZATION

Prof. Giacomo Calzolari, Prof. Davide Dragone60 class hours, 8 credits

Learning outcomesOn completion of the course, students will have a basic and broad knowledge of the modern Industrial Organization: about how firms operate in markets, their strategies, different modes of competition and how firms interact with consumers. In particular, students will be able to describe imperfectly competitive markets, understand and evaluate strategies by firms in real-world industries, assess the effects of market structure and firms’ behavior on profitability and welfare, assess the role of public policies, interpret the evolution of real-world industries. Students will also learn the basic tools of strategy and game theory.The course will be “hands-on” and students will thus learn practical skills, developing oral and written communication skills and how microeconomic analysis can be applied to specific industries. All this will provide solid ground for many career paths such as in economic, financial and strategy consulting and in policy evaluation.

Course contentsThe first part of the course will firstly quickly cover some basic tools in microeconomics, then move on illustrating the classic forms of market structure and competition from monopoly to perfect competition, but mainly focusing on imperfect competition. Special attention will be devoted to the analysis of product differentiation and price discrimination and related strategies

such as bundling and tying. This first part will also introduce the basic tools of strategy and game theory.The second part will cover more advanced and applied topics, such as vertical relations, advertising, networks and intermediaries, the role of information in markets and R&D strategies for innovation.The last part will deal with the issue of collusion, will illustrate the role of competition policy and the activity of antitrust authorities and will cover the area of industrial policy and regulation.

Readings/BibliographyPepall, Lynne; Richards, Dan; Norman, George Industrial Organization: Theory and Applications, 5 th

Edition | 978-1-118-25030-3 ISBN-13: 9781118250303 Wiley. Also available at CourseSmart.

Teaching methodsTeaching will combine traditional lecturing, active classroom learning (“flipping the classroom”) and participation to a “role-playing game” (Competitive Strategy Game) requiring students to set-up their own enterprise and operate in virtual markets, earning profits (or making losses!).

Assessment methodsAssessment of students will be based on a written closed-book exam (70%), class participation (5%), outcome and presentation for the Competitive Strategy Game (25%).

Links to further informationhttp://www.unibo.it/docenti/giacomo.calzolarihttp://www2.dse.unibo.it/calzolari

Office hoursSee the website of Giacomo Calzolari and Davide Dragone

47731 - INTERNATIONAL TRADE

Prof. Alireza J. Naghavi; Prof. Gianmarco I. P. Ottaviano60 class hours, 8 credits

Learning outcomesThe course consists of four parts. The aim of the first part is to introduce students to the debate on globalization from the viewpoint of international trade in goods and services. The aim of the second and third parts is to give students a better understanding of the causes and consequences of international trade, and of the effects of trade policies respectively. The aim of the fourth part is to equip students with the main approaches to the analysis of international factor movement and multinational operations, and to discuss the role of the World Trade Organization. Upon completing the course, students will have acquired a theoretical framework to understand the complex issues raised by the economic interdependence of nations and to analyze them in a systematic way.

Course contents

1) Globalization and its discontents

a) Key concepts and key facts b) Opposite views

2) Cause and Consequences of International Trade

a) North-South Trade: The Comparative Advantage Theory

i. The Ricardian Modelii. The Specific Factors Model

iii. The Factor Proportions Model

b) North-North Trade: Economies of Scale and Imperfect Competition

3) Trade Policy

a) The Instruments of Trade Policiesb) The Political Economy of Trade Policies

4) International Factor Movements, Globalization, and Developing Countries

a) Foreign direct investment and migrationb) Offshoring, outsourcing, and licensingc) Trade policy in developing countriesd) Controversies about the WTO and globalization (intellectual property rights, labor

standards, trade and environment)

Readings/BibliographyP. Krugman, M. Obstfeld, M. Melitz, "International Trade: Theory and Policy”, 10th Edition, Pearson, 2014. R. Feenstra, A. Taylor, "International Economics", 3rd Edition, Macmillan, 2013.

Teaching methodsDuring the 60 teaching hours, topics will be tackled in the order indicated in the program. After the presentation of the underlying theory behind the topic under study, the political economy applications of each and relevant exercises will be carried out.

Assessment methodsWritten examination.

Teaching Tools22 lectures (44 hours); 8 exercises/discussions (16 hours)

Contactsalireza.naghavi@unibo.itgianmarco.ottaviano@unibo.it

39069 - LABOR ECONOMICS

Prof. Giulio Zanella60 contact hours, 8 credits

Learning outcomesIn this module you will learn how the labor market works, why the government regulates it by setting up specific institutions, and what are the effects of these institutions on workers’ behavior, employers’ behavior, and market equilibrium. The labor market is a very specific market because the services that are exchanged there for pay (labor services) are embodied into people. Think of a non-specific market such as the market of apples: apples of a given variety are equal or almost so, they do not make choices about whether to show up on the market or remain on the tree, they do not complain or decide to taste worse if their price is too low. Not so people. People differ from each other in many relevant respects and respond to incentives. At the end of the course you will be able to understand labor markets from an economic perspective and to participate in a non-ideological way to the public debate about labor issues.

Course contents Labor supply: how people allocate their time between labor market activity (searching for a job, working at that job when they get it) and other activities such as working at home, how they solve the problem of division of labor within the household, how they choose where to supply labor services (migration)Labor demand: how firms look for workers, hire and motivate them, fire them

Human capital: how people acquire the skills they need to increase their value on the labor market, via formal education, on-the-job training, and learning by doing.

Market equilibrium: how this process generates equilibrium wages, employment rates, unemployment, discrimination, earnings inequality.

Labor market institutions: how governments regulate labor markets via unemployment insurance, job protection legislation, minimum wages, collective bargaining, etc.

Readings/BibliographyOne of the following (to be decided): G. Borjas, Labor Economics; or R. Ehrenberg and R. Smith, Modern Labor Economics: Theory and Public Policy

Teaching methodsClasses

Assessment methodsWritten exam

Links to further information

http://www2.dse.unibo.it/zanella/teaching.htm

Contactsgiulio.zanella@unibo.it

Third year

75363 - CORPORATE FINANCE

Prof. Stefano Mengoli60 contact hours, 8 credits

Learning outcomesThis course aims to provide the students with the fundamental concepts, principles and approaches of corporate finance, enabling them in solving related problems. The perspective is the corporate market value maximization. The course focuses on principles that guide corporate managers in taking investing and financing decisions; in addition provides students with the standard quantitative analysis techniques commonly used in portfolio management and asset-allocation. After taking this course, students are expected to be able to fully understand the basic theory and techniques which lead investors and financial managers to take decisions, and ultimately critically analyze these latters in light of shareholders wealth maximization.

Course contentsTopics covered in this course include:

- Computing and interpreting financial ratios, analyzing balance sheet in a financial perspective- Security valuation (bond and stocks)- Corporate value creation: project evaluation and capital budgeting- Firm evaluation- Cost of capital, measuring risk and return- Determinants of capital structure decision- Dividend policy and buybacks- WACC and APV- Options theory applied to corporate finance.

Readings/Bibliography

Brealey R., Myers S. and F. Allen, Principles of Corporate Finance, 11/e, 2014, McGraw-Hill, ISBN-13: 978-0077151560 (Global Edition - without Connect Plus option). Supplementary study material such as papers and exercises will be available from time to time on the instructor website.

Teaching methodsLectures and class exercises on the different topics covered in the course. Students are strongly advised to (actively) attend all the lectures.

Assessment methodsThe course grade will be based on a standard written final exam. A Mid-term exam is also planned. Exams will be indicatively made of exercises, and multiple choices. Students may voluntarily take an oral examination in order to improve their grades.

Teaching toolsSlides, exercises and applications.

67730 - ECONOMETRICS

Prof. Renzo Orsi60 contact hours, 8 credits

Learning outcomesThis course focuses on techniques for estimating regression models, on problems commonly encountered in estimating such models, and on interpreting the estimates from these models. The goal of the course is to teach you the basics of the theory and practice of econometrics and to give you experience in estimating econometric models with actual data. By the end of this class, students should be able to:

Critically appraise work in the area of applied economics. Analyse and make use of empirical data in economics to solve a variety of problems. Make use of econometric software package GRETL as tools of quantitative and statistical

analysis to compute empirical results. Understand the assumptions behind the models that are used and the limitations of the results

obtained. Develop a good intuitive and theoretical grasp of the dangers, pitfalls and problems

encountered in undertaking applied modelling. Basically, at the end of this class students will know how to do basic empirical research using

economic data.

Course contents Review of Mathematics and Statistics Introduction to econometrics

The Simple Regression Model Multiple Regression Analysis: Estimation and testing Multiple Regression Analysis: Further Issues Autocorrelation and Heteroskedasticity More on Specification and Data Problems Multiple Regression Analysis with Qualitative Information: Binary Variables Introduction to Time Series Data: stationarity and ergodicity Dynamic Models and Multiple Regression Dynamic Specificatrion Testing for stationarity and cointegration Model evaluation

Readings/Bibliography

- J. M. Wooldridge; “Introductory Econometrics: A Modern Approach”; 5th edition (2013), South-Western.

- J. H. Stock and M. W. Watson; “Introduction to Econometrics”; 3rd edition (2010); Addison-Wesley Series

Teaching methods- Lectures- Practice sessions in computer lab- Self-study in computer lab (doing home assignments using GRETL, working with economic

data, doing research on the web)- Self-study with literature

Assessment methodsThree exams sessions will be available: the first two at the end of the semester and a retake in September. The exam may be organized in two mid-term exams at the end of each term, or a cumulative final exam. Details will be given during lectures.

Teaching ToolsThe statistical software package GRETL will be used for estimation and testing. Lab sessions will consist of instruction and examples helpful in completing the homework assignments, and other activities.

Contactsrenzo.orsi@unibo.IT

25752 - INTERNATIONAL FINANCE

Prof. Giorgio Bellettini60 hours, 8 credits

Learning outcomesIn this course will examine the major theoretical and policy issues in open-economy macroeconomics and international finance. Students will learn the determinants of exchange rates dynamics, balance of payments developments, and open economy macroeconomic policy. Special attention will be devoted to exchange rate arrangements and monetary unions, with strong emphasis on the euro area, and to speculative attacks on currencies.

Course contents

1. Basic concepts in international finance: the balance of payments2. Basic concepts in international finance: the foreign exchange market3. Spot and forward exchange rates4. Alternative exchange rate regimes and monetary policy5. Exchange rate determination: the purchasing power parity6. Exchange rates, interest rates and the trade balance7. Economic policies and exchange rate regimes8. The debate on fixed vs. flexible exchange-rate regimes9. The European Monetary Union. Monetary policy and the European Central Bank10. Currency crises

Readings/Bibliography R. C. Feenstra and A. M. Taylor, International Macroeconomics, MacMillan, third edition.

Teaching methods Lectures

Assessment methods Mid-terms and final written exams

Office hours See the website of Giorgio Bellettini

75754 - MONETARY AND FINANCIAL ECONOMICS

Prof. Gabriella Chiesa60 class hours, 8 credits

Learning outcomesAt the end of the course, students should have acquired sufficient knowledge to understand the functioning of financial markets, their interactions with the macro-economy and the functioning and role of monetary policy. More specifically: i) the principles that govern risk management and the allocation of risk; ii) asset price formation, and the concepts (models) of market liquidity, liquidity risk and price informativeness; iii) money creation in the modern economy, the

functioning of monetary policy, the transmission mechanism of monetary policy and its interactions with the state of financial markets.

ContentsThe goal of this course is to provide the tools for understanding deeply: 1) the functioning of financial markets; 2) their interactions with macro-economy and the role played by monetary policy. The course analyses the role of financial markets in the inter-temporal allocation of resources, risk allocation, and information aggregation. It provides the tools for risk evaluation, asset portfolios, asset price formation, and the analysis of monetary policy. These concepts will then be used for the analysis of the macro-economy, with particular attention to the key aspects of the financial crisis.

The course is structured in two parts:

Part 1 : Economics of financial markets

The role of financial markets in the inter-temporal allocation of resources and risk allocation

Risk management:- Decisions under uncertainty - Expected utility : concepts and applications - Certainty equivalent: concept and applications

Portfolio theory- Portfolio feasibility and efficiency- Efficient frontier without a risk free asset, and the two mutual fund theorem- The risk free asset, the tangency portfolio and the efficient frontier- Capital Asset Pricing Model (CAPM) – and the assumptions required

Market equilibrium and asset prices Empirical evidence on CAPM Asset market liquidity and asset prices

- Funding liquidity and market liquidity- Theory and empirical evidence

Part 2 : Monetary economics in financial- market - based economies

Central bank’s balance sheet : static balance sheet and intertemporal balance sheet Seignorage: modelling seignorage and limits to seignorage (Laffer curve) Monetary policy at work:

- Instruments- Intermediate targets- Ultimate objectives

The transmission mechanism of monetary policy- The role played by financial markets’ liquidity in the transmission mechanism:

empirical evidence

Financial markets’ liquidity and monetary policy:- Quantitative easing- Qualitative easing- Empirical evidence: Central banks’ balance sheets pre and post crises

Focus on the Eurosystem

Readings/BibliographyLecture notes made available (downloadable) on Ams Campus Unibo

- Mishkin, F. (2013) “The Economics of Money, Banking and Financial Markets”, Pearson, 10°

- The Monetary Policy of the ECB, Editore: BCE, 2011- “Global Economics View, Looking into the Deep Pockets of the ECB”, W.Buiter e E.

Rahbari, Citigroup Global Markets, 27 February 2012- Global Economics View, Why Does The ECB Not Put Its Mouth Where Its Money Is? The

ECB As Lender Of Last Resort For Euro Area Sovereigns And Banks”, W.Buiter e E. Rahbari, Citigroup Global Markets, 27 February 2012.

Contacts:gabriella.chiesa@unibo.it

75757 - BEHAVIORAL ECONOMICS

Prof. Maria Bigoni60 hours, 8 credits

Learning outcomesAt the end of the course, students will have a basic knowledge of the tools of experimental economics and of the main results produced during the last three decades of research in experimental and behavioral economics.

Course contentsDuring the last three decades, economics has been progressively permeated by behavioral considerations. Researchers have investigated whether and under which conditions theoretical models are able to predict how people actually make decisions. When a detachment between the theoretical predictions and the observed behavior emerged, new models have been proposed, aimed at an increase of the descriptive accuracy, which preserved the analytical tractability . The process gave rise to completely new streams of literature, in the fields of game theory, law and economics, finance, and industrial organization. The empirical approach adopted in behavioral economics is largely based on laboratory experiments, aimed at studying behavior in markets, games and other strategic situations, under strictly controlled environmental conditions.This course is designed to offer an introductory overview both of the tools adopted, and of the most established results that have emerged within this broad strand of literature.

Readings/BibliographyHolt, Charles A. “Markets, games, and strategic behavior: recipes for interactive learning”, Pearson Addison Wesley, 2006.

Teaching methodsTeaching will combine participation in mock-experiments, active classroom learning exercises, and traditional lecturing.

Assessment methodsAssessment of students will be based on one short essay on a topic of their choice, among those discussed in the course (40% of the module’s final mark), plus a final exam (60% of the module’s final mark) which will include a set of questions covering both the mathematical/analytical aspects of the models discussed in class and their interpretation. In the final exam students may use calculators (but not other electronic devices), but they may not consult notes, books, or other written material (including their classmates' exam papers).

Teaching ToolsDuring the course, students will be involved in mock experiments, which should provide them with a more vivid idea of the issues to be examined later during the lecture, and active participation to the in-class discussion will be encouraged.

Links to further informationhttp://www.unibo.it/docenti/maria.bigonihttp://www2.dse.unibo.it/bigoni

Office hoursSee the website of Maria Bigoni

One elective module among the following:

Behavioral Economics Economic Analysis Financial Instruments and Financial Markets

75756 - ECONOMIC ANALYSIS

Prof. Roberto Scazzieri60 hours, 8 credits

Learning outcomes

The course areas of interest are: (i) economic systems and reduction of complexity: introduction to economic analysis; (ii) paradigms of economic theory; (iii) economic theories and institutional assumptions: separation theorems; (iv) connections, social norms, institutional set-ups.

The course aims to provide systematic guidelines in the assessment of economic knowledge and in the interpretation of economic literature. This is done through discussion and logical co-ordination of analytical themes central in the evolution of the discipline. Teaching consists of formal lectures and classes.

Course contents

Lectures follow the syllabus below:

1. Economic systems and reduction of complexity

2. Paradigms of economic theory: overview and introduction to pure production and pure preference models

3. Pure preference models3.1. Preference and rationality criteria3.2. Maximization and satisficing choice (Herbert Simon's approach)3.3. Weighted maximization and rational choice: multiple objectives (Bruno de Finetti's approach)

4. Pure production models4.1. Pure labour economies and production technologies4.2. Economies with labour and capital-goods technologies4.3. Production technologies and co-ordination criteria

5. Economic theory and institutional assumptions: separation theorems

6. Connections, social norms, institutional arrangements6.1 Connections and networks6.2. Institutional arrangements and co-ordination criteria6.3. Co-ordination and social norms6.4. Co-ordination and the institutions of production

Teaching includes research seminars by Antonio Andreoni (SOAS, University of London, and Institute of Manufacturing, Cambridge), Ivano Cardinale (Emmanuel College and Judge Business School, Cambridge), Enrico Petracca (University of Bologna), and Andrea Carlo Lo Verso (University of Bologna).

Classwork is an essential component of the course. Students will be required to comment on selected topics of economic literature. Topics for classwork will be assigned at the beginning of the course.

Readings/Bibliography

Topic 1:

*H. Simon, ‘The Architecture of Complexity', Proceedings of the American Philosophical Society, vol. 156, n. 6, December, 1962, pp. 122-137. (Italian translation with comments: H. Simon,

'L'architettura della complessità', in Informazione e studi di progettazione ambientale, n. 5, Istituto universitario di architettura di Venezia, anno accademico 1970-71.)

H. Simon, ‘Near decomposability and the speed of evolution', Industrial and Corporate Change, 2002, 11 (3), pp. 587-99.

Loasby, Choice, Complexity, and Ignorance: an Enquiry into Economic Theory and the Practice of Decision-making, Cambridge, Cambridge University Press, 1976, pp. 29-57.

Topic 2:

M. Baranzini and R. Scazzieri, ‘Knowledge in Economics' , in M. Baranzini and R. Scazzieri (eds), Foundations in Economics. Structures of Inquiry and Economic Theory , Oxford and New York, Basil Blackwell, 1986, pp. 1-87.

*L.L. Pasinetti, ‘Theory of Value-a Source of Alternative Paradigms in Economic Analysis', in M. Baranzini and R. Scazzieri (eds), Foundations in Economics. Structures of Inquiry and Economic Theory , Oxford and New York, Basil Blackwell, 1986, pp.409-31.

*J. Hicks, ' "Revolutions" in Economics', in S.J. Latsis (ed). Method and Appraisal in Economics, Cambridge, Cambridge University Press, 1976, pp. 207-18.

*A.Quadrio Curzio and R. Scazzieri, 'The Exchange-Production Duality and the Dynamics of Economic Knowledge', in M.Baranzini and R. Scazzieri (eds), Foundations of Economics. Structures of Inquiry and Economic Theory, Oxford and New York, Basil Blackwell, 1986, pp. 377-407.

Topic 3:

*de Finetti, B., ‘Due lezioni su “Teoria delle Decisioni” (Two lectures on decision theory), in Accademia Nazionale dei Lincei, Contributi del Centro Linceo Interdisciplinare di scienze matematiche e loro applicazioni, n. 6, Roma, Accademia nazionale dei Lincei, 1975, pp. 643-656.

*V.L. Smith, Rationality in Economics. Constructivist and Ecological Forms, Cambridge, Cambridge University Press, 2008, pp. 1-42.

*H. Simon, Reason in Human Affairs, Stanford, Stanford University Press, 1983.

*A. Sen, ‘Maximization and the Act of Choice', Econometrica, vol. 65, No. 4 (Jul., 1997), pp. 745-779.

P. Suppes, ‘The Limits of Rationality', Grazer Philosophische Studien, 12/13, pp. 85-101, (in Collected Works of Patrick Suppes, Section III (Methodology, Probability and Measurement), http://suppes-corpus.stanford.edu/article.html?id=22)

P. Suppes, ‘Rationality, Habits and Freedom', in N. Dimitri, M. Basili and I. Gilboa (eds), Cognitive Processes and Economic Behavior. Proceeding of a Conference held at Certosa di Pontignano, Siena, Italy, July 3-8, 2001, pp. 137-67 (in Collected Works of Patrick Suppes, Section III (Methodology, Probability and Measurement), Stanford, http://suppes-corpus.stanford.edu/article.html?id=394).

P. Suppes, ‘The Good and the Bad, the True and the False', in M.C. Galavotti, R. Scazzieri and P. Suppes (eds), Reasoning, Rationality and Probability, Stanford, CSLI Publications, 2008, pp. 13-35.

67 (in Collected Works of Patrick Suppes, Section III (Methodology, Probability and Measurement), Stanford, http://suppes-corpus.stanford.edu/article.html?id=425).

Gigerenzer, G. and Selten, R., eds., Bounded Rationality: The Adaptive Toolbox, Cambridge, Mass., MIT Press, 2001.

Byron, M., ed., ‘Introduction', in M. Byron (ed), Satisficing and Maximizing. Moral Theorists on Practical Reason, Cambridge, Cambridge University Press, 2004, pp. 1-13.

Topic 4:

*L. Pasinetti, Structural Economic Dynamics. A Theory of the Economic Consequences of Human Learning, Cambridge, Cambridge University Press, Chapter II ('A Pure Labour Production Economy'), Cambridge, Cambridge University Press, 1993, pp. 15-26.

* L.L.Pasinetti, Lectures on the Theory of Production, New York Columbia University Press, Londpn, Macmillan, 1977, Chapters II and III.

*L.L. Pasinetti and R. Scazzieri, ‘Capital Theory: Paradoxes', in The New Palgrave Dictionary of Economics. Second Edition (eds S. N. Durlauf and L. E. Blume), London, Palgrave Macmillan, 2008; The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. http://www.dictionaryofeconomics.com/article?id=pde2008_C000042 .

*R. Scazzieri, A Theory of Production. Tasks, Processes and Technical Practices, Oxford, Clarendon Press, 1993, pp. 27-33, and pp. 83-101.

Topic 5:

B.de Finetti, B. (1952). 'Sulla preferibilità' ('On Preferibility') , Giornale degli economisti e annali di economia, 1952, pp. 685-709.

*L. L. Pasinetti, ‘The stage of pure economic theory', in L.L. Pasinetti, Keynes and the Cambridge Keynesians. A ‘Revolution in Economics' to be Accomplished, Cambridge, Cambridge University Press, pp. 274-304.

R. Scazzieri, ‘The Feasibility of Normative Structures', in M.C. Galavotti, ed., Bruno de Finetti: Radical Probabilist , London, College Publications, 2009, pp. 129-152.

Topic 6:

*S. Goyal, Connections. An Introduction to the Economics of Networks, Princeton, Princeton University Press, 2007, pp. 9-24.

*N. Georgescu Roegen, ‘The institutional aspects of peasant communities: an analytical view', in N. Georgescu-Roegen, Energy and Economic Myths, New York, Pergamon Press, pp. 199 - 231.

R. Burt, Structural Holes. The Social Structure of Competition, Cambridge, Massachusetts, Harvard University Press, 1995.

*R. Scazzieri, ‘Context, congruence and co-ordination', in M.C. Galavotti, R. Scazzieri and P. Suppes, eds., Reasoning, Rationality and Probability, Stanford, CSLI Publications, 2008, pp.187-207.

M. Landesmann and R. Scazzieri, ‘The production process: description and analysis', in M. Landesnmann and R. Scazzieri (eds.), Production and Economic Dynamics, Cambridge, Cambridge University Press,1996, pp. 191-228.

M. Landesmann and R. Scazzieri, ‘Coordination of production processes, subsystem dynamics and structural change', in M. Landesmann and R. Scazzieri (eds.), Production and Economic Dynamics, Cambridge, Cambridge University Press,1996, pp. 304-43.

*A. Andreoni and R. Scazzieri, ‘Triggers of Change: Structural Trajectories and Production Dynamics', Cambridge Journal of Economics, 38, 2014, pp. 1391-1408.

R. Scazzieri, M.L. Baranzini and C. Rotondi, 'Resources, Scarcities and Rents: Technological Interdependence and the Dynamics of Socio-Economic Structures', in M.L. Baranzini, C. Rotondi and R. Scazzieri (a cura di), Resources, Production and Structural Dynamics, Cambridge, Cambridge University Ptess, 2014, pp. 427-84.

*I. Cardinale, 'Sectoral Interests and "Systemic Interests": Towards a Structural Political Economy of the Eurozone", in I. Cardinale. D. Coffman and R. Scazzieri (eds), The Political Economy of the Eurozone, Cambridge, Cambridge University Press, 2016.

*A. Pabst and R. Scazzieri, 'The Political Economy of Civil Society', Constitutional Political Economy, 2012 (4, December), pp. 337-56.

I. Cardinale, D. Coffman and R. Scazzieri, 'Framing the Political Economy of the Eurozone: Structural Heuristics for Analysis and Policy' , in I. Cardinale, D. Coffman and R. Scazzieri (eds), The Political Economy of The Eurozone, Cambridge, Cambridge University Press, 2016.

Teaching methods

Critical survey of the literature, analysis of core theoretical models, identification and discussion of interpretive frameworks

Assessment methods

Exam component I: Internal 2-stage coursework assessment with final evaluation;

Exam component II: Paper presentation in the Laboratory of Economic Analysis on a topic and bibliography preliminarily agreed with the Lecturer and subsequent submission of research paper (4,000 to 5,000 words) on the same topic.

Students unable to attend the Laboratory of Economic Analysis are asked to satisfy the requirements of Exam component II by submitting two research papers (approximate length: 4,000 to 5,000 words) on topics and bibliographies preliminarily agreed with the Lecturer.

Formal lectures and classes. Active participation in discussion and classwork is required.

See the website of Scazzieri Roberto

75755 - FINANCIAL INSTRUMENTS AND FINANCIAL MARKETS

Prof. Luigi Marattin:Credits: 8, 60 class hours

Learning outcomesOn completion of this course, students will know about the main types of product used in the financial markets, such as debt and equity tools both in retail and wholesale markets, and their risk-reward properties. Students will also command a critical and theoretical knowledge of financing decisions, the different financial instruments, and how these allow to meet players’ needs from the point of view of firms and of institutional investors.

Course contents Mechanics of different financial instruments for raising and investing funds from the view

point of different users. Concepts of Time Value of Money, “required rate of return”. Cash Capital Market Instruments and the functioning of major physical capital markets. Yield Curve and Market-Determined Interest Rates. Bond Markets. Equity markets. Derivative Instruments. Commodities and other asset classes.

Readings/BibliographyHandouts and material from manuals on Capital Markets Instruments.

Teaching methodsClass teaching with students’ active participation. Case studies and “hands-on” activities by students.Assessment methodsExam, problem sets and performance at “hands-on” activities.

Teaching ToolsTraditional plus analysis with spreadsheets and financial software.

Links to further informationTBA

Office hoursSee the website of the instructor.

81794 - FINANCIAL ECONOMICS

Prof. Vincenzo DenicolòCredits: 8, 60 class hours

Learning outcomesThis course helps you develop a way of thinking on how individuals make choices among investment alternatives. We will explore the design of optimum portfolios of securities in an uncertain environment and the measurement of their performance over time. Further, the role of FX dynamics in internationally integrated markets and derivatives instruments in managing risk will also be discussed. This is not meant to be a 'get-rich-quick' course. It proposes solutions and techniques subjected to real-world data and particular attention will be given to the provision of lasting conceptual frameworks, useful to analyze new ideas and future challenges in the investment environment.

Course contents

Introduction and basic concepts• Introduction, course outline• Taxonomy of securities and markets• Risk and returnPortfolio analysis and diversification• Portfolio diversification• Portfolio analysis: 2 assets• Portfolio analysis: many assetsInvestors’ preferences• Mean-variance optimization• Investors’ preferences and optimal portfoliosImplementation of portfolio theory• The Single index ModelEquilibrium• The Capital Asset Pricing ModelEquilibrium• Multi-factors models (Fama-French)• Arbitrage Pricing TheorySecurity analysis: equities• Equity valuation• Present value models• Macroeconomic, industry and company analysisSecurity analysis: bonds• Bond prices and yields• Duration and convexity• Term structure of interest ratesPerformance measurement and international portfolio management• Measuring investment returns• Conventional measures of investment performance

• International diversificationActive portfolio management• On the Efficient Markets Hypothesis (EMH): introduction• Treynor-Black model

Readings/BibliographyThe main textbook is Bodie, Z., Kane, A. and Marcus, A. J. (2011), Investments and Portfolio Management, 9th edition, McGraw-Hill.A supplementary book is Elton, E.J., Gruber, M.J., Brown, S.J. and Goetzmann, W.N. (2003), Modern Portfolio Theory and Investment Analysis, 6th edition, Wiley.Additional readings may be recommended in class.

Teaching methodsLectures

Assessment methodsThe overall course grade will be computed on the basis of the following scheme:Final examination: 80%Coursework: 20%The final exam will comprise both analytical exercises and an essay. The final exam will focus on concepts discussed during the whole course.The coursework comprises two sections, one containing exercises and the other a short essay. Each section counts for 10% of the final mark. The coursework is due by the end of week 9 (the exact deadline will be specified in due course), and will be handed out one week in advance.

Office hoursSee the website of the instructor.

Modules of future activation

DEVELOPMENT: ECONOMICS AND FINANCIAL MARKETS

Module summary:

The objective of this module is to provide students with analytical and empirical tools that enable them to understand the functioning of financial markets and institutions in developing countries. The module will first cover issues such as political institutions, corruption, property rights and the contractual structure in agriculture. Then we will take a more micro view and discuss topics more closely connected to the functioning of financial markets and access to financial services in less developed countries, such as credit market imperfections, microfinance contracts, formal and informal insurance and access to saving products. For each major topic covered we want to derive testable implications from the theory, subject these to empirical testing and draw out policy conclusions.Module outcomes: By the end of the module students should have achieved the following:(a) acquired an enhanced empirical knowledge of economic conditions in low and middle income economies;(b) acquired an understanding of the functioning of financial markets in developing countries;(c) consolidated the understanding of those elements of basic economic theory which we apply to the problems of development and financial markets;(d) acquired an understanding of the main theoretical results and empirical methods that are used by the profession to study developing countries; Textbooks: Banerjee, Abhijit V. and Esther Duflo (2011). Poor Economics, Chapter 1, Public Affairs, New York.Debraj Ray’s Development Economics, Princeton University Press, 1998