David F Layton
PB AF 599
Study and analysis of special topics in public affairs. Topics vary each quarter depending on curricular needs and interests of students and faculty.
TOPIC: Honors Microeconomics: Economics, Policy, and the 2008 Financial Bailout
This course will focus on developing the microeconomic foundations necessary for better understanding the current financial crisis, the evolving bailouts, and on gauging future implications. This includes, but is not limited to, examining issues in: the regulation of markets and firms; financial theory; real estate markets and mortgage lending; risk and uncertainty; and obviously some macroeconomics as well. The primary texts will focus on understanding the public good aspect of financial systems and what this suggests about appropriate regulatory mechanisms; bond, bond markets, and bond derivative securities; and detailed analysis of the subprime mortgage crisis. The primary readings will be supplemented with additional readings from sources such Brookings, AEI, government publications, and the Economistsí Voice.
Student learning goals
General method of instruction
As quantitative financial theory is a blend of microeconomics and statistics, students should have a good command of the material covered in 516. Prior exposure to basic statistics and probability is helpful. Students may take the course concurrently with 527. Students should contact the Professor if they have concerns regarding their preparation. This course has been approved by the Evans Graduate Program Coordinator as fulfilling the Economics Restricted Elective.
Class assignments and grading