EC4024 Financial Economics

Second Part

6. Zombie theories of finance

  1. Watch John Quiggin’s lecture on Zombie Economics.
  2. Modigliani, F. and Miller, M. (1958) “The Cost of Capital, Corporation Finance and the Theory of Investment”American Economic Review 48 (3), pp. 261-297.
  3. Fama, E.F. (1970) “Efficient Capital Markets: A Review of Theory and Empirical Work”Journal of Finance 25 (2), pp. 383-417.
  4. André F. Perold The Capital Asset Pricing Model The Journal of Economic Perspectives, Vol. 18, No. 3. (Summer, 2004), pp. 3-24. (Here are some Notes on CAPM)
  5. Anne Villamil, Modigliani Miller Theorem, New Palgrave Dictionary of Economics

 

7. Finance, Innovation and growth: Schumpeter vs Romer. A case of technological change

  1. Greenwald, B. C. and Stiglitz, J. E. (1993). Financial market imperfections and business cycles. The Quarterly Journal of Economics, 108(1)
  2. Perez, C. (2010). Technological Revolutions and Techno-Economic Paradigms. Cambridge Journal of Economics, 34(1).
  3. Romer, P. (1990). Endogenous Technological Change. Journal of Political Economy, 98(5)

 

8. Finance and Development: 1 Microfinance: holy grail of development finance?

  1. Bhaduri, Amit (1973) A Study in Agricultural Backwardness Under Semi-Feudalism. The Economic Journal , Vol. 83 (329).
  2. Stiglitz, Joseph (1990) Peer Monitoring and Credit Markets. The World Bank Economic Review , Vol. 4, No. 3,
  3. Morduch, Jonathan (2000), The Microfinance Schism, World Development, 28(4)

 

9. Finance and Development 2: Swaps and CDS as a good thing?

  1. Rutten, Lamon (2003). A primer on new techniques used by the sophisticated financial fraudster. Report, United Nations Conference On Trade And Development (UNCTAD), 2003.
  2. Philips, Matthew (2008). The Monster That Ate Wall Street. Newsweek, September 27, 2008.
  3. Weistroffer, Christian (2009) Credit default swaps - Heading towards a more stable system, Deutsche Bank Research, Current Issue, December 21, 2009.

 

10. Algorithmic trading, high frequency finance: the case of the flash-crash

  1. Arnuk, Sal and Joseph Saluzzi (2012), Broken Markets, Chapters 2 and 10.
  2. Tarun Chordia, Amit Goyal, Bruce N. Lehmann, Gideon Saar (2013) High-frequency trading, Journal of Financial Markets 16(4).

 

11. Ethical Finance: doing good and making money at the same time?

  1. Carol Cosgrove-Sacks and Paul H. Dembinski (Eds.) Trust and Ethics in Finance - Innovative ideas from the Robin Cosgrove Prize, Globethics.net Global 6:
    1. Paul H. Dembinski (2012) Ethics and the Economy: A Tense Relationship
    2. Bruno Federico Fernández (2012) Ethics vs. Finance? An analysis of the Origins, Problems and Future Perspectives of this Relationship
  2. F. de Clerck (2009). Ethical Banking. In Ethical Prospects (pp. 209-227). Springer Netherlands.

12. Recap