Fall 2014

The Economics of Finance

Listed in: Economics, as ECON-423

Formerly listed as: ECON-63


Geoffrey R. Woglom (Section 01)


A study of the role of financial markets in the efficient allocation of resources. We look at how financial markets: (1) enable the transfer of resources across time and space; (2) facilitate the reduction and management of risk; and (3) provide information about the future, which is important to public policymakers as well as private firms and individuals. The financial theories studied include: (1) the theory of present discounted values; (2) the capital asset pricing model; (3) the efficient markets hypothesis; and (4) the Black-Scholes model for the pricing of contingent claims.

Requisite: ECON 300 or 301, MATH 211, or consent of instructor. Limited to 35 students. Fall semester. Professor Woglom.

If Overenrolled: Preference given to senior and junior economics majors.


2022-23: Not offered
Other years: Offered in Spring 2009, Spring 2010, Fall 2012, Fall 2014, Fall 2015