• Course title: 3.E1.Behavioural Finance
• Number of ECTS: 5
• Course code: MScFE_BK-6
• Module(s): Module 3.E: Special Topics in Finance and Economics – Electives II
• Language: EN
• Mandatory: No

On completion of the course unit successful students will be able to :Know anomalies in finance and economics and understand theoretical explanationsKnow the foundations of behavioural finance and behavioural economicsUnderstand human behaviour

 The course: introduces to the literature on the anomalies in financial markets and the theories of behavioral economics and finance. Departing from the standard paradigm in financial economics, expected utility and the capital asset pricing model, we pinpoint anomalies that show up in the data from the real world and the laboratory.includes models of prospect theory, noise trader risks, psychological game theory, bounded rationality that help to understand the divergence between observed behavior and the standard paradigm of financial economics.

Written exam (2 hours)

Literature: Barberis and Thaler 2003. “A survey of behavioral finance.” Handbook of the Economics of Finance, 1, 1053-1128Dhami, Sanjit, 2016, Foundations of behavioral economic analysis. Oxford University PressGigerenzer and Selten (Eds.) 2002. Bounded rationality: The adaptive toolbox. MIT pressHens, Thorsten and Kremena Bachmann, 2009, Behavioral Finance for Private Banking, WileyKahneman and Tversky 1979 “Prospect Theory: An Analysis of Decision under Risk” EconometricaShleifer Andrei, 2001, Inefficient markets – An introduction to behavioral finance. Calderon Lectures in EconomicsThaler 1985 “Mental accounting and consumer choice”. Marketing science, 4(3), 199-214Thaler 1999 “Mental accounting matters”. Journal of Behavioral decision making, 12(3), 183-206Thaler and Johnson 1990 “Gambling with the house money and trying to break even”. Management science 36, 643-660Tversky and Kahneman 1992 “Advances in prospect theory”. Journal of Risk and uncertainty, 5(4), 297-323Further readings will be communicated during the lectures.

• Course title: 3.FET1.Econometrics (III) (STATA)
• Number of ECTS: 5
• Course code: MScFE_FE-1
• Module(s): Module 3.FET: Specialisation Financial Economics Track
• Language: EN
• Mandatory: Yes

• Understand the fundamentals of causal inference and its importance in empirical research• Familiarise with recent advancements in causal inference methods, especially those aimed at handling heterogeneity in treatment effects• Understand the underlying assumptions and identification strategies of most common causal inference methods• Develop the ability to critically evaluate empirical studies using causal inference methods• Apply the learned techniques to real-world datasets and research questions, and interpret the results accurately• Develop problem-solving skills for tackling complex econometric challenges and making informed decisions about appropriate methods

The aim of this course is to equip students with advanced skills and in-depth knowledge in causal inference with a specific emphasis on handling heterogeneous treatment effects. The first part of the course provides a general review on causal inference based on the potential outcomes framework, the link between regression and causality, the estimation of treatment effects using methods that rely on the conditional independence assumption (IPW, AIPW, IPWRA, Matching) and instrumental variables with heterogeneous treatment effects (LATE). The second part of the course focuses on the methods of difference-in-differences and regression discontinuity designs covering new developments. The course aims to provide a solid understanding of the underlying assumptions and identification strategies of these methods and provide hands-on training with STATA enabling students to apply these methods effectively to real-world datasets and empirical research questions.

Assessment Modality

Combined or continuous assessment

Task 1

Mid-term exam

 

0-20

30 %

Specific Assessment Rules

1h

 

Task 2

Written exam

 

0-20

70%

Specific Assessment Rules

2h

 

Literature:

Slides and do-files are available on Moodle.

 

• Course title: 4.E1.Design Execution and Evaluation of Research in Finance and Economics
• Number of ECTS: 5
• Course code: MScFE_BK-12
• Module(s): Module 4.E Special Topics in Finance and Economics – Electives III
• Language: EN
• Mandatory: No

On completion of the course unit successful students will be able to:Execute an academic research project: identify a research question, position it in the context of current literature, formulate hypotheses and apply appropriate methodology to test them, present results and discuss the implications of the analyses that have been carried out; critically assess academic research and the work of peers.The course is intended to equip students with the necessary knowledge and tools to carry out independent research and prepare them for the master thesis – either academic or the research section of the applied thesis.

The course aims at developing and strengthening students’ academic skills in identifying and analyzing research questions, applying research methods in finance and economics to approach these questions, and interpreting results relative to the current state of the art.The course is centered around a set of research projects in Finance and Economics that students carry out in small research teams. Each team focuses on an individual research project and carries it out along all its stages, from identifying a research question and motivating its relevance to choosing appropriate methodology to address it, executing the analysis, and presenting and interpreting the results.The course is structured as follows:1. Introductory session on a selected set of research topics, providing guidance on identifying each respective research question, on the appropriate research methodology and empirical strategy, the respective data to use for the empirical analysis, and related literature.2. Execution stage during which research teams plan and conduct their chosen research projects.3. Student presentation sessions at each stage of the execution of the research projects:3.1.     Research idea/question, motivation behind it and current state of the art.3.2.     Research methodology, empirical setup, development of hypotheses, overview of the data needed to address the research question.Execution and analysis of results, potential further areas of inquiry, conclusion.

60% Seminar paper30% Presentation10% Discussion

Academic articles that represent the key references for the set of research projects distributed ahead of the course.

• Course title: 4.Applied Master Thesis (including Internship)
• Number of ECTS: 20
• Course code: MScFE_BK-19
• Module(s): Module 4.FET.Master Thesis
• Language: EN
• Mandatory: No