This module, taught by Prof. Stéphane Guibaud, covers a wide array of topics in financial economics, from asset pricing to corporate finance, macro finance, and international finance.
The course falls into four parts.
Part I :
reviews the fundamentals of asset pricing theory based on absence of arbitrage, portfolio optimization, and equilibrium.
Part II :
departs from the classic benchmarks and focuses on the impact of various frictions on the formation of asset prices.
Part III :
delves into the origins of financing frictions and explores their consequences for firms and the economy.
Part IV :
is dedicated to standard models of sovereign debt and international capital flows.
The outline below is subject to modifications
PART 1: Fundamentals of Asset Pricing
Lecture 1: Absence of arbitrage and derivatives pricing
Lecture 2: Static portfolio choice and capital market equilibrium
Lecture 3: Dynamic portfolio choice and asset prices
PART 2: Asset Pricing with Frictions
Lecture 4: Market liquidity and asymmetric information
Lecture 5: Market liquidity and financial intermediaries
Lecture 6: Asset prices with heterogeneous beliefs
PART 3: Credit Constraints – Origins and Consequences
Lecture 7: Investment financing under moral hazard
Lecture 8: Output and asset price dynamics under collateral constraints
Lecture 9: The subprime crisis & the real effects of a banking crisis
PART 4: Sovereign Debt
Lecture 10: Sovereign debt & default under incomplete markets
Lecture 11: Self-fulfilling debt crises
Stéphane GUIBAUD
Séminaire
English
Autumn 2025-2026
Assessment:
one take-home problem set, one referee report, and one final exam (in week 12)