Ideas, common sense, and Asian American Literature
We will ask if and how public policy can affect inequality. We will also focus on business's role -- what are the responsibilities of private sector companies, how does inequality affect them, and how should the growth in inequality affect their strategies? We will look at inequality in income, some of its potential sources, and its effects in other areas. Specifically, we will look at education, housing, the social safety net, migration, and the job market.
The class will be very interactive and will be based on readings drawn from academic research, case studies, news, and opinion readings. We will also have guest speakers from industry, government, and non-profits. The class will be co-taught by a GSB labor economist and an advisor to policy makers with decades of business experience.
This course provides the legal, institutional, and economic background necessary to understand the financing and production of health services in the US.
This course provides a framework to understand how uncertainty and technology affect the evolution of finance and businesses generally , with heavy emphasis on recent developments and future trends. In recent years Myron Scholes has given about half the lectures with the other half given by prominent guests. Jeremy Bulow may replace Myron for a small number of lectures. Smart Pricing and Market Design.
This course is an Advanced Applications option in the Economics menu. The focus of the course is on pricing mechanisms and the design of marketplaces. The pricing component of the course will handle both traditional topics, such as price differentiation, and more modern ones, such as bundling and dynamic pricing. In the market design component of the course, we will consider such topics as auctions e. Economic issues permeate all that happens in government. This topics-based course will exam a variety of historic and current issues on the political agenda where economics is central to decision making.
Measuring Impact in Practice. This class will provide students practical skills for measuring impact in business and social enterprise, with a principal focus on evaluating, conducting, and analyzing experiments and quasi-experiments.
How large is the impact of raising prices on sales? Is an advertising campaign working? Does a non-profit actually improve people's lives? Students will finish the course with the ability to design, analyze, and skeptically evaluate experiments that can rigorously answer questions like these.
Students will acquire a conceptual understanding of basic experimental statistics to inform these skills. Students will also be exposed to how leading companies, researchers, and social innovators strategically deploy experiments.
Finally, students will conduct their own experiments on a topic of their choosing in small groups. The class will not assume any prior statistical or mathematical training. Completing short problem sets will require acquiring basic knowledge of R.
Platform Competition in Digital Markets. This class will analyze the economics of digital platform markets. The class format will consist of lectures and guest speakers. Concepts will be presented in the context of leading examples of internet and technology platforms such as online advertising, computing technology platforms e. The course will begin with economic definitions of platform markets, and it will review the most important insights from recent research in economic theory and strategy.
It will then consider the role of scale economies and network effects in determining the dynamics of platform competition and long-run industry structure. Next, the class will consider key strategic decisions for firms, including entry strategies, vertical integration and exclusive deals.
This class will provide an overview of the rapidly evolving area of distributed ledger and blockchain technologies, with a focus on economic and strategic issues. We will cover key components of the architecture that affect the products derived from cryptocurrency.
We then consider tokens as a store of value and exchange, analyzing models of cryptocurrency pricing and as a vehicle for raising of capital. Next, we consider use cases including payments, micropayments, asset registries, and smart contracts. We then analyze barriers to entry in cryptocurrencies, as well as how the new products they enable affect industry structure in both the financial sector and the economy and society as a whole.
For example, how might decentralized systems like the blockchain impact the sharing economy? We consider the governance of these decentralized systems and how decentralization affects the potential for the management and success of platforms. We discuss the potential for national digital currencies and the end of cash.
Finally, we consider consumer protection, privacy, security, regulation, and the power of governments and regulators over borderless, decentralized systems. Students will benefit from guest lectures by industry and thought leaders. Poverty rates have fallen markedly in countries around the world, as more households have joined the lower middle-class. However, by developed country standards, poverty remains pervasive.
What has caused the decline in rates of poverty and can we expect further decreases or can we act to accelerate the improvements? One answer is that countries that have experienced "inclusive growth", in which the growth of the economy i. Therefore, the class will consider the evidence on the factors that have contributed to inclusive economic growth in developing countries.
A second answer as to why poverty has fallen, but remains at high levels, is that governments and aid agencies and foundations have targeted programs to the poor. This course discusses macroeconomic policy, targeted government policies, aid, and entrepreneurship in developing countries.
The course is co-taught by a Stanford economist and a World Bank consultant and will build on examples from recent experiences. The class is aimed at GSB students who are either intellectually curious about the topic or anticipate doing business in developing countries.
The class will be co-taught by a GSB labor economist and an advisor to policy makers with decades of business experience see http: Statistical Experimentation in Businesses. Most statistical questions involving data ultimately are about causal effects. What is the effect of changing prices on demand?
What is the effect of an advertising campaign on demand. In this course we discuss statistical methods for analyzing causal effects. We look at the analysis and design of randomized experiments. We also look at various methods that have been used to establish causal effects in observational studies. Students will develop the skills to assess causal claims and learn to ask the right questions and evaluate statistical analyses.
You will carry out research projects and work with statistical software. Data Driven Decision Making. This is a short course on data driven decision making. The purpose of the course is to help students become intelligent consumers and producers of data analytics in the business context.
We will spend a lot of time on understanding the difference between correlation and causation, and measurement issues such as small sample problems and selection bias. By the end of the course students will have sharpened analytical skills, and will be more critical of data and statistical analyses. Topics in International Macroeconomics and Finance. This course gives students a background to understand fundamental issues in international macroeconomics and finance. Key topics include international asset pricing, hedging exchange rate risk, the relation between interest rates and exchange rates, business cycle fluctuations in emerging markets as well as in developed countries, banking and currency crises.
By the end of the course, students should be able to read and understand the discussions of these topics in a publication such as The Economist. Each week we will have one lecture on fundamental concepts and one that applies these to recent events. This course will overview a rapidly growing body of research into management practices.
This project evaluated about 20, organizations in manufacturing, retail, healthcare and education across North and South America, Europe, Asia, Africa and Australasia, providing global insight into the basic management practices around monitoring, targets and talent management that firms adopt around the world.
We will examine the link between management and performance, and the reasons for differences in management across firms, industries and countries. This will be supplemented with the results from more recent research with national statistical offices see www. The course will focus on making students familiar with: A modern management research and B a management evaluation scoring too for the rapid evaluation of large groups of firms.
This would be well suited for students potentially interested in doing further research after the MBA, those that want a more academic course, and people interested in tools for evaluating management practices in large samples of companies. This course provides an introduction to the foundations of modern microeconomic theory.
Topics include choice theory, with and without uncertainty, consumer and producer theory, dynamic choice and dynamic programming, social choice and efficiency, and fundamentals of general equilibrium. This course studies the roles of information, incentives and strategic behavior in markets. The rudiments of game theory are developed and applied to selected topics regarding auctions, bargaining, and firms' competitive strategies; information economics; and contracting and market design.
Auctions, Bargaining, and Pricing. This course covers mostly auction theory, bargaining theory and related parts of the literature on pricing. Key classic papers covered in the course are Myerson and Satterthwaite on dynamic bargaining, Myerson on optimal auctions, and Milgrom and Weber's classic work, the Coase Conjecture results.
We also cover a few more recent developments related to these topics, including dynamic signaling and screening. In some years we also cover topics in matching theory. This is the first course in the sequence in graduate econometrics. The course covers some of the probabilistic and statistical underpinnings of econometrics, and explores the large-sample properties of maximum likelihood estimators.
You are assumed to have introductory probability and statistics and matrix theory, and to have exposure to basic real analysis. Topics covered in the course include random variables, distribution functions, functions of random variables, expectations, conditional probabilities and Bayes' law, convergence and limit laws, hypothesis testing, confidence intervals, maximum likelihood estimation, and decision theory. This course presents a comprehensive treatment of econometric methods used in economics, finance, marketing, and other management disciplines.
Among the topics covered are: This course uses Matlab or similar computational software, but previous experience with such software is not a prerequisite. This course completes the first-year sequence in econometrics. It develops nonparametric, semiparametric and nonlinear parametric models in detail, as well as optimization methods used to estimate nonlinear models.
The instructor will discuss identification issues, the statistical properties of these estimators, and how they are used in practice. Depending on student and instructor interest, we will consider advanced topics and applications, including: Students and faculty review and present recent research papers on basic theories and economic applications of decision theory, game theory and mechanism design.
Applications include market design and analyses of incentives and strategic behavior in markets, and selected topics such as auctions, bargaining, contracting, signaling, and computation. This course covers various topics in macroeconomics and is designed to expose students to macroeconomic methods, classic papers in the field, and the latest research at the frontier.
The current focus is on economic growth. Using theoretical and empirical tools, we consider questions like: How do we understand long-run growth in per capita income? Why are some countries so much richer than others?
Other topics include misallocation as a source of TFP differences, the direction of technical change, growth and the environment, the rise in health spending, patenting, and international trade. Modern macroeconomics of aggregate fluctuations in advanced economies. Current research on sovereign debt, fiscal policy and financial flows, low growth and stagnation, low interest rates, financial crises, unemployment fluctuations, and other timely topics.
The course will be organized around the detailed study of recent research papers. Some lectures will be given by visiting macroeconomists. Students develop a research proposal and present it to the instructors as the final exam.
Satisfaction of the economics department's core macro requirement or consent of the instructors. Theory and Practice of Auction Market Design. This class will focus on several topics in auction market design and related areas. Students are expected to be familiar with the material in those courses.
We will briefly review some basics of auction theory, but the main goal of the class is to bring students closer to doing independent research and introduce them to recent contributions and currently active research areas.
Specific topics may include: This is an advanced game theory course and requires a basic background in game theory or an advanced applied game theory course.
The course covers foundational topics such as type spaces, modeling reasoning and rationality, game forms, solution refinements and more. A collection of additional topics will be covered independently via problem solving assignments in workshop style meetings with student presentations. Topics will include the study of macroeconomic models with financial frictions, the term structure of interest rates, conventional and unconventional monetary policy, sovereign debt crises, search frictions and segmentation in housing markets, over leveraging by households, heterogeneous expectations, excess volatility, financial bubbles and crises.
Student presentations and course paper requirement. Designed for second year PhD students in economics or finance. Social Insurance and Urban Economics. The course covers various topics relating to social insurance.
The first half of the course covers the rationale for government interventions into private insurance markets, adverse selection, social insurance design and the intersection between social insurance and intra-family insurance. The second half of the course covers local public policy through the lens of social insurance, and includes topics such as spatial equilibrium, placed-based policies and housing policy. Dynamic Political Economy Theory.
This course is intended to be an introduction to dynamic political economy theory. We will cover research at the frontier of this field and some useful tools.
Tools will be primarily dynamic game theory - including Markov models and models of reputation. Topics covered will include dynamic legislative bargaining, dynamic coalition formation, endogenous institutions, endogenous policy formation, and policy experimentation.
Continuous-time Methods in Economics and Finance. Continuous-time methods can, in many cases, lead to more powerful models to understand economic phenomena. The Black-Scholes option-pricing formula is significantly more tractable than discrete- time methods of option pricing based on binomial trees.
There is an established tradition in continuous-time asset pricing, and there is increasing use of these methods in other fields, such as game theory, contract theory, market microstructure and macroeconomics. The intention is to give graduate students a tool, which they can use to gain comparative advantage in their research, when they see appropriate.
Up to one half of the class will cover established models, and the rest will focus on new papers. If students have their own work that uses continuous time, we can take a look at that as well. There will also be room for short student presentations related to homework assignments, economic papers, or definitions and results related to specific math concepts. This course will provide an overview of recent advances in, and applications of, dynamic oligopoly models in I. We will start by introducing a simple framework for dynamic oligopoly in the context of a dynamic investment model.
We will move on to other applications and extensions of the framework, including dynamic entry models and dynamic mergers, with a discussion of antitrust issues. We will cover an empirical model of dynamic network adoption and participation. We will learn alternative econometric approaches to the identification and estimation of dynamic oligopoly models, including a discussion of serially correlated unobserved shocks.
Finally, we will discuss methods for computing counterfactuals and welfare, and then speculate about some unresolved issues and the potential for future work in this area. Reading Group in Industrial Organization.
This course meets weekly on Tuesdays at Noon. The primary purpose of the course is to read and discuss current working papers in Industrial Organization and related fields e. Students are required to present papers a couple of times per quarter and both students and faculty may also present their own working papers.
The course is an important introduction to PhD level research topics and techniques. This is an introductory course in Industrial Organization. The goal is to provide broad general training in the field, introducing you to the central questions around imperfect competition, market structure, innovation and regulation, as well as the models and empirical methods commonly used to tackle these questions.
Topics in Continuous Time Dynamics. This seminar-style course studies a selection of micro-economic models in dynamic settings, and explores the use of continuous-time methods to solve them.
For every topic discussed, the class introduces gradually the set of relevant mathematical tools: The course emphasizes high-level intuition rather than mathematical rigor. It is targeted at those who seek to become familiar with the literature on continuous-time dynamics and want to understand the functioning of these models, either by general interest or to apply these techniques. Machine Learning and Causal Inference.
This course will cover statistical methods based on the machine learning literature that can be used for causal inference. In economics and the social sciences more broadly, empirical analyses typically estimate the effects of counterfactual policies, such as the effect of implementing a government policy, changing a price, showing advertisements, or introducing new products.
This course will review when and how machine learning methods can be used for causal inference, and it will also review recent modifications and extensions to standard methods to adapt them to causal inference and provide statistical theory for hypothesis testing.
We consider causal inference methods based on randomized experiments as well as observational studies, including methods such as instrumental variables and those based on longitudinal data. We consider the estimation of average treatment effects as well as personalized policies. Lectures will focus on theoretical developments, while classwork will consist primarily of empirical applications of the methods. Students without prior exposure to causal inference will need to do additional background reading in the early weeks of the course.
Quantitative Methods for Empirical Research. This is an advanced course on quantitative methods for empirical research. Students are expected to have taken a course in linear models before. In this course I will discuss modern econometric methods for nonlinear models, including maximum likelihood and generalized method of moments. The emphasis will be on how these methods are used in sophisticated empirical work in social sciences. Special topics include discrete choice models and methods for estimating treatment effects.
This seminar will examine applications of labor economics to business issues and firms' practices. Material will include both theoretical and empirical work, and the syllabus will range from classics in Personnel Economics to current unpublished research.
Some of the topics to be covered include, but are not limited to, compensation practices, assignment of decision rights, organizational structure, attracting, retaining, and displacing employees, and workplace practices such as team-based organization, profit sharing, etc.
Undergraduate Finance Research and Discussion Seminar. This seminar is designed to provide some experience with research methods and topics in finance, and to assist undergraduates with career interests in financial research, whether academic or not, with preparation for those careers. The seminar meetings are weekly and discussion based, covering a range of issues and methods in financial economics.
Students are expected to prepare a minute research presentation once during the quarter. This course covers the foundations of finance with an emphasis on applications that are vital for corporate managers. We will discuss many of the major financial decisions made by corporate managers, both within the firm and in their interactions with investors.
Essential in most of these decisions is the process of valuation, which will be an important emphasis of the course. Topics include criteria for making investment decisions, valuation of financial assets and liabilities, relationships between risk and return, capital structure choice, payout policy, the use and valuation of derivative securities, and risk management.
This course is targeted to those students who are new to finance and for those with little quantitative background. Topics include criteria for making investment decisions, valuation of financial assets and liabilities, relationships between risk and return, capital structure choice, the use and valuation of derivative securities e. Therefore, students choosing this course should be relatively comfortable with basic mathematical operations e.
A good diagnostic is to skim Section 4. If you are comfortable with the level of basic mathematics involved even if the concepts are new , is a good choice. No previous background in finance is required or expected for this course. Content will be comparable to F, but the majority of course lecture material will be delivered online, with in-class sessions devoted to applications of key concepts.
This "flipped classroom" version of the course is intended for self-motivated students with an interest in applications. Prerequisite material for the course will be posted online in the fall.
Corporations, Finance, and Governance in the Global Economy. As entrepreneurs, global leaders, and change agents tasked with developing transformative solutions of tomorrow, you will need certain skills and tools to interact with and navigate the complex and ever-changing financial landscape. This course focuses on the development of these skills and tools through the analysis of concise real-world financial situations around the globe.
Topics include valuation of cash flows and control; the capital structure, payout policy and governance of both mature and entrepreneurial firms; restructuring and managing financial distress; the use of public markets to obtain liquidity and multiple share classes to retain control; financing and governance in venture capital and private equity; the rise of activism; and social responsibility and debates about the objectives of the firms of the present and future.
This course is taught jointly by Professors Rauh and Seru. Applications, Techniques, and Models. This course will develop and apply the basic tools and models of corporate finance to real-world corporate decisions. This course is designed to be the second course in the standard finance sequence; that is, it is designed to be the natural follow-up to the Winter Managerial Finance course.
This course will develop and extend standard tools and techniques of financial analysis, valuation, and model-building, and apply these methods to a wide range of cases. Case topics will include mergers and acquisitions, private equity, corporate governance, capital structure, agency conflicts, and corporate restructuring. For all of these applications, this course will emphasize the central importance of financial analysis, valuation, and modeling to guiding optimal decision making.
This course covers the foundations of corporate finance including the management of capital structure, financial forecasting, dividend policy, financial distress, cost of capital and capital budgeting. It discusses the major financial decisions made by corporate managers and the impact of those decisions on investors and the value of the firm.
Topics include criteria for understanding the valuation of financial assets and liabilities, relationships between risk and return, market efficiency, and the role of derivative securities, including options.
The course also provides coverage of the role of financial markets in the operations of the firm. Capital Markets and Institutional Investing.
This course teaches recent advances in asset allocation and management. We focus on the practical implementation of asset allocation and management tools in allocating assets, selecting asset managers and managing risk.
Students apply these tools to real-time data in the computer lab. This advanced applications course brings recent advances in finance to bear on real-world challenges in investment management and corporate finance. The goal of this course is to develop a deeper understanding of how capital markets actually work, drawing on recent advances in modern finance. We discuss the implications for financial decision making by managers and investors.
Examples of broad topics covered in the class include corporate capital structure decisions, challenges in portfolio management, performance analysis of mutual funds, hedge funds and private equity, IPOs, hedging of currency and interest rate risk, etc. To be eligible, students must have passed the placement exam in Week Zero, must have solid quantitative skills and have a willingness to analyze data.
Innovating for Financial Inclusion. This MBA elective explores innovative ways that start-ups are expanding the financial capacities of households and small businesses. What economic and behavioral forces are governing the successes of these startups? How is the competitive landscape evolving for traditional banks, established tech platforms, and FinTech startups?
While the center of attention will be on disruption of financial services within the US legal and regulatory environments, we will frequently highlight recent innovations in Asia, Europe, and Latin America. Private Equity Investing Seminar. This course is intended for those who plan careers that may involve debt financing for their businesses or other investments, or involve trading or investing in debt instruments and their derivatives, including money-market instruments including central bank deposits, government bonds, repurchase agreements, interest-rate swaps, mortgage-backed securities MBS , corporate bonds, structured credit products, and credit derivatives.
We will emphasize institutional features of the markets, including trading, pricing, and hedging. There is a special focus on distressed debt. Most lectures will start with a cold-called student presentation of an un-graded short homework calculation.
There will also be a series of graded homework, a take-home mid-term, and about six graded 'pop quizzes' of 10 minutes or less. Investment Management and Entrepreneurial Finance. The Investments courses comprise an intensive overview of active fundamental investing in both the public and private equity markets. They are relevant for students interested in venture capital, growth equity, private equity, hedge funds, mutual funds, family offices and principal investors.
The Investments courses will have two sections of 50 students each: Section 1 will be enrolled in F and F While the course names and course numbers for the two sections are different, in Autumn the course materials, guest speakers, instructors, assignments and grading criteria in both sections will be substantially identical.
F is a 3-unit graded course that meets each day 3: It addresses real-world applications of business analysis and valuation tools and teaches the skills necessary to evaluate investment opportunities. Students delve into specific topics in private equity, venture capital, hedge funds, mutual funds and principal investing.
The Investments courses will make use of original case studies and teaching notes authored by the late Professor Jack McDonald and a team of course alumni from prior MBA classes. The Investments courses enable MBA students to learn a broad investing skillset and study the careers of outstanding investors.
Financial Intermediaries and Capital Markets. This course focuses on financial markets, institutions, and instruments. We consider when and how firms raise capital through the life cycle, beginning with the capital-raising decisions and transactions for young firms and then discussing the decisions facing older, listed firms.
We concentrate mainly on the firm's perspective while also considering the perspective of financial intermediaries. Issues to be considered in this course include the role of financial intermediaries like banks, the decision to go public, the pricing and role of investment banks in IPOs, bank debt, project finance, public debt, private placements, securitizations, convertibles, and markets for junk bonds.
The focus of this course is to apply the fundamental ideas of corporate finance to real-world problems. This course is a follow-up to the Fall course in Managerial Finance in which the basics of finance and valuation were covered.
We will explore both how to make the acquired knowledge practical as well as to deepen our understanding of the core principles of finance. These cases provide an opportunity to bridge the gap between theory and real-life situations.
Students are expected to develop their own spreadsheets and provide recommendations based on their analysis of the case material. This course is an introduction to options, futures and other derivative securities. The goal is to learn a core set of principles that underlie the pricing and use of derivatives. In particular, we will cover the valuation and use, both for risk management and for speculation, of forwards, futures, swaps, and options; the Black-Scholes option-pricing formula; delta-hedging; credit derivatives; financial risk management; and the role of derivatives in the recent financial crisis.
The aim of this course is to develop a thorough understanding of financial markets. We explore how investors make decisions about risk and return, how financial markets price risky assets in equilibrium, and how financial markets can sometimes malfunction.
The course puts particular emphasis on the role of real-world imperfections that are absent from the standard textbook view of financial markets. For example, we explore the role of illiquidity: Why are there liquid markets for some types of assets but not for others?
Why does liquidity often disappear in times of market turmoil? We will also study recent insights from behavioral finance about investor psychology and market inefficiencies. Moreover, we will look at financial innovations such as credit-default swaps, securitization, and hedge funds that play important roles in financial markets these days. We use cases to develop these topics in the context of practical decision-problems in the areas of asset allocation, risk management, and financing.
The course is a follow-up to the Fall Managerial Finance course where students learnt basics of valuation tecyhniques and various finance applications. We will explore both how to make all this knowledge practical as well as how to deepen our knowledge of fundamental finance ideas.
Topics include leveraged buyouts, hostile takeovers, private equity financing and venture capital, financial distress and bankruptcy, mergers and acquisitions, managing working capital. The cases will be used to motivate our discussion of how to bridge the gap between rigorous finance theory and its application to practical problems in corporate finance.
The course is intensive and will require students to prepare carefully all cases, read and understand a lot of materials, and actively participate in the class discussion. The main teaching method is cold calling.
This interdisciplinary course explores the economic, political, and behavioral forces that shape the financial system and, through this system, have a major impact on the economy and society. You will gain an in-depth understanding of how the complex interactions between individuals, corporations, governments, and the media can help markets work or, in turn, generate governance failures and inefficiencies.
Visitors with varied experiences will enrich our discussions of key questions about the workings of capitalism in liberal democracies. Corporate Valuation, Governance and Behavior. This course will develop a detailed knowledge of corporate valuation techniques, together with an understanding of the role such valuations play in a wide range of corporate financing decisions.
First, the course will carefully consider different valuation techniques, the assumptions that underlie each of these methods, how they are applied in practice, how they are related to one another, and how to decide which method of valuation is appropriate for a given application. After developing these tools, they will then be applied to a wide range of corporate finance settings.
Among the applications to be considered are mergers and acquisitions, international valuation, corporate governance, financial distress, agency conflicts, asymmetric information, and overvaluation.
For all of these applications, this course will emphasize the central importance of valuation to understanding observed phenomena and to guiding optimal decision making, as well as the unique challenges to valuation posed by the particular application. The Finance of Retirement and Pensions. The financial economics of how retirement is financed, particularly in the US.
Properties of financial instruments such as bonds and stocks. Optimization of individual retirement account or k portfolios. Measuring defined benefit pension liabilities.
Impact of defined benefit pension liabilities on corporate, state, and local budgeting. The economics of national retirement policy including Social Security and government treatment of private retirement savings. Modeling for Investment Management. This course will combine practical and up-to-date investment theory with modeling applications.
Understanding beautiful theory, without the ability to apply it, is essentially useless. Conversely, creating state-of-the-art spreadsheets that apply incorrect theory is a waste of time. Here, we try to explicitly combine theory and application. The course will be divided into 6 modules, or topics. The first day of each module will be a lecture on an investment topic. Also provided is a team modeling project on the topic.
The second day of each module will be a lab. The lab day will begin with modeling concepts tips designed to help you use Excel to implement the module's investment topic. On the third day of each module will be presentations and wrap-up. History of Financial Crises. Financial crises are as old as financial markets themselves.
There are many similarities between historical events. The crisis of , for example, is far from unique. More often than not financial crises are the result of bubbles in certain asset classes or can be linked to a specific form of financial innovation. This course gives an overview of the history of financial crises, asset price bubbles, banking collapses and debt crises.
We start with the Tulip mania in and end with the recent Euro crisis. The purpose of the course is to understand the causes of past crises and to develop a conceptual framework that ties common elements together. We will discuss the lessons that we can draw for financial markets today. The object of this course is to study the money management industry from the perspective of the user an investor who wants to invest money.
This course will study the main components of the money management industry: It will also examine important users of the industry such as non profits, endowments and defined benefit pension funds. The emphasis of the course will not be on how fund managers make money, but rather on how the industry is organized, how managerial skill is assessed, how compensation is determined, and how economic rents are divided between managers and investors.
The course will explore how competitive market forces interact with managerial skill and other market frictions to give rise to the observed organization of the industry. This course is designed to help students understand the connections between money the Federal Reserve , financial markets, and the macroeconomy. How are interest rates determined, and how does the Federal Reserve conduct monetary policy?
How do Federal Reserve actions impact the US as well as other economies? What economic factors drive the yield curves in different bond markets? We will pay particular attention to the banking system, with an eye toward understanding the function, valuation, and regulation of banks. We touch on a number of topics including the role of the Federal Reserve as a lender of last resort during financial crises, unconventional monetary policy tools such as quantitative easing and forward guidance, cryptocurrency, and emerging market financial crises.
We will often begin class with a discussion of current macro-financial market events in the context of our course coverage. This course will expose students to the fundamentals, best practices, and advanced techniques of corporate financial modeling.
We begin with basic operating and integrated financial statement models, and ultimately develop financial models to analyze major corporate transactions, including venture capital funding, mergers and acquisitions, and leverage buyouts. We will integrate theories presented throughout the MBA core, particularly those from accounting and finance, and take a hands-on approach to understand how the theory is implemented in practice.
The focus of the course will be on developing critical financial modeling skills, understanding best practices, and recognizing common pitfalls. Students will work on a series of cases and build models that can be used for earnings and pro-forma financial statement forecasts, valuation, the assessment of financing needs, merger analysis, and LBO evaluation.
Students will also gain experience presenting financial models and critically assessing them. By the conclusion of the course, students will develop the skills to construct complex financial models and the logical frameworks to utilize them for various organizational applications. Advanced Corporate Financial Modeling. Students will engage in the development of corporate financial modeling cases and solutions. Students will also develop materials to aid others in building financial models, and serve as case leaders during lab workshops.
Extensive background in financial modeling and experience with Excel is required. This course provides an introduction to behavioral finance, a discipline which integrates insights from psychology into the study of financial decisions and markets. There will be a focus on understanding the psychological underpinnings of financial decision-making as well as the institutional frictions that may allow these psychological mechanisms to influence economic outcomes.
Applications include the pricing of assets relative to fundamental value, trading strategies, managerial behavior, and household savings and investment decisions. Conceptual issues will be emphasized through a mix of case discussions and lectures, and quantitative exercises will serve to develop analytical tools for making financial choices.
The purpose of this course is to familiarize students with the different types of trading strategies employed by various money management institutions. These financial trading strategies are used to manage the risk and return profiles of specific portfolios. Throughout the sessions, students will be challenged to understand and explore the application and implementation of these different strategies. Trading simulations employed on the Rotman Interactive Trader and Rotman Portfolio Manager using real market data and computer generated data will be used extensively in this course as a way to learn and test different strategies.
Students are expected to attend all sessions. Grades are based on in-class simulation results, class participation, and two written assignments. This is a course about the financial decision-making process largely from the point of view of the CEO of an entrepreneurial venture, ranging from very early to very late stages.
The course takes a two-pronged approach: First, we develop tools and concepts of corporate finance related to modeling, valuation, control, and investment decisions within an entrepreneurial context. Second, we use cases with firms at different stages of their life cycles from initial angel or venture capital investments through exit decisions, in order to see the issues that arise when these principles are applied in practice. In some cases we show the viewpoint of the entrepreneur and in others the perspective of the investor.
After all, as an entrepreneur, one cannot negotiate effectively without understanding an investor's motivations. Conversely, an investor cannot evaluate a potential investment opportunity without appreciating the entrepreneur's perspective and incentives.
Finally, we explore new developments in entrepreneurial finance such as crowdfunding and early liquidity provisions. This course is a survey of China's financial system, including its banking industry, monetary policy structure, and financial markets bonds, derivatives, equities, foreign exchange, alternative asset management, and related markets. The goal is an integrated view of how capital, risk, and liquidity are intermediated within China and cross-border.
Current trends including liberalization of markets and financial stability will be emphasized. Coverage will be through lectures, reading of research, including primary source documents and secondary journalistic and analyst commentary. There will be a range of subject-matter-expert speakers.
Students will participate actively in class discussion, make a 5-minute research presentation, and submit a page term paper. Private Equity in Frontier Markets: Creating a New Investible Asset Class. In , Jim O'Neil of Goldman Sachs wrote a research note which underscored the importance of so-called Emerging Markets to a well-balanced investment portfolio. Still today, most investors have little or no investment exposure beyond North America, Europe, Japan and more recently India, China and Brazil.
All of this is just beginning to change. The not yet fully formed investment category called frontier market private equity is emerging and within the next decade is likely to be an asset class of its own. Even fund of funds are appearing across these markets. At the same time, investors face a world of diminished returns expectations in developed economies just as aging demographics and the need for continued growth, innovation and infrastructure renewal places increasing demands for payout.
Suffice it to say, investors will be looking beyond traditional asset classes and geographies for sources of return. This new course is designed to expose you to the still emerging, not yet fully formed world of frontier market private equity. To set the context we will start by reviewing the fundamentals of economic growth and development globally.
In addition we will discuss the fundamental concepts involved in constructing and evaluating the performance of a large scale investment portfolio. We will also focus on issues that are specific to various markets e. Students taking the course will be given the opportunity to make important contributions to the knowledge base of this still very young field by working in small teams to research topics of personal and general interest, the results of which will be reported to the rest of the class.
This course will not be offered next academic year, This course covers all the stages of funding for early stage high-growth companies, from seed funding to venture capital rounds to a successful exit.
We will concentrate on how entrepreneurs and investors make and should make important decisions. Examples of issues that we will cover are: How can entrepreneurs raise funding successfully? What are typical mistakes entrepreneurs make in raising capital and negotiating with investors?
How to choose your investor? How to pitch to an investor? How do angels and VCs generate and process their deal flow and select companies? What are the important provisions of financial contracts between VCs and founders? How to value early-stage companies? The course is very applied and mostly case-based. We will discuss a lot of nitty-gritty details that is a must for founders and investors.
Case protagonists, founders, angels, and VCs will be among guest speakers. No prior knowledge of the VC industry is needed. The financial crisis exposed the extreme fragility of the financial system and the harm financial crises can cause. Have regulatory reforms in the US and Europe been effective and, if not, how and why? Does it matter if some institutions are "too big to fail," and, if so, how and why? This course will discuss the economic and political forces that are shaping the financial system in US and Europe and evaluate recent and current events that will have important implications for the economy for many years.
We will see how politics trumps economics in Washington, London and Brussels in different but broadly predictable ways. Private Wealth Management and Personal Investing. The Private Wealth Management and Personal Investing course will address issues that relate to the management of personal assets as opposed to institutional investing. Many investment courses at the GSB emphasize large institutional portfolios but this course is about portfolio decisions for individuals.
It will cover the origins and growth of private wealth management as an industry, investment planning, risk management, inter-generational transfers of wealth, choice of wealth advisors and philanthropy. Special emphasis is on understanding how wealth managers may be evaluated, including potential conflicts of interest, and performance measurement.
Classes will focus on case studies and various readings. Two instructors will lead the class, one from the GSB and one from the private wealth management industry. Most classes will be augmented by visits from professionals in the wealth management and private banking business. Active class participation and a group project are required. This course is a speaker series, exposing students to the world of first-class investors and their philosophies. Each week will have a different visitor describing their investment strategy and experience.
Attendance at all sessions is a requirement to pass the course. The Tiangong-1 spacecraft launched in , with the aim of using the craft to set up a larger space station. The craft is now at an altitude of less than kilometres miles in an orbit that is decaying, forcing it to make an uncontrolled re-entry.
Website Satflare has calculated odds of re-entry in March 20 per cent , in April 60 per cent and in May 20 per cent. The vehicle is It has a liftoff mass of 8, kilograms and provides 15 cubic metres of pressurised volume.
The vehicle was the nation's first step towards its ultimate goal of developing, building, and operating a large Space Station as a permanent human presence in Low Earth Orbit.
Tiangong-1 features flight-proven components of Chinese Shenzhou Spacecraft as well as new technology. The module consists of three sections: It has a liftoff mass of 8, kilograms and provides 15 cubic metres of pressurized volume.
Much of the spacecraft is expected to burn up in the atmosphere upon re-entry. But owing to the station's mass and construction materials, there is a possibility that some portions of it will survive and reach the surface. In the history of spaceflight, no casualties due to falling space debris have ever been confirmed.
The Chinese space agency has been tracking the space station pictured before it was launched in , and vowed to issue warnings if there are any potential collisions imminent. But not everyone is convinced by this. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. Tuesday, Sep 11th 5-Day Forecast. Elizabeth Smart is furious one of her kidnappers Wanda Barzee is to be released from prison after serving just 15 years for holding her captive in the woods for nine months Royal insiders dismiss claims Camilla schemed to split up William and 'pretty but dim' Kate before their wedding - as she thought the now Duchess was too 'lowly' to join the monarchy Hurricane Florence could strengthen to 'life-threatening' Category 5 storm with up to 1.
She never deserved it': Model tells Dr Phil she DID order a hit man to kill her husband's ex by throwing her in a wood chipper after she's sentenced to just five years prison Why smokers are more susceptible to the common cold: Your nose can fight off viruses and chemicals - but not at the same time Previous. Lower Michigan may be crash site for falling Chinese space station Will the free-falling 8. Scroll down for video. Share this article Share. Share or comment on this article: Shocking moment man 'carrying meat cleaver' in Hull city Tearful vegan, 26, tells of her horror at eating meat for Brexiteers are playing 'Russian Roulette' by trying to Stephen Colbert rips his former Taking out the trash!
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