Economics of Financial Markets ECON 311 (3)

Microeconomics of financial markets to understand social benefits and costs. Studies the household risk-taking and saving decisions underlying demand for financial assets, the firm financing decisions underlying supply of financial assets, and how these determine asset prices. Explores implications of adverse selection, moral hazard, biases, and regulation for market function and social efficiency. Prerequisite: ECON 201 with a minimum grade of C-. Students with credit for ECON 383 under the title "Financial Economics" may not take this course for further credit.