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JOHN CABOT UNIVERSITY

COURSE CODE: "EC 480"
COURSE NAME: "Senior Seminar in Economics and Finance"
SEMESTER & YEAR: Spring 2017
SYLLABUS

INSTRUCTOR: Mary Merva
EMAIL: [email protected]
 HOURS: TT 6:00 PM 8:45 PM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS: 3
PREREQUISITES: Prerequisites: EC 301, EC 302 or EC 316, FIN 301, EC 360 or MA 209 (as of Fall 23)
OFFICE HOURS:
COURSE DESCRIPTION:
Designed to be a capstone course, emphasis is placed on both theoretical and quantitative methods in the fields of economics and finance. Basic tools of economics and statistics are used to analyze a variety of contemporary economic problems and policy issues. Students read through major papers and may undertake research on specific topics so as to develop their understanding of economics and finance. Papers and topics cover the current issues of interest in the areas of microeconomics, macroeconomics, econometrics, and finance to include the CFA Professional Code of Ethics and Standards of Professional Conduct. Students may be expected to present and write about their research topics as well as demonstrate an ability to work with quantitative information. The course is structured into modules/sections taught by a group of faculty members.
SUMMARY OF COURSE CONTENT:
This course aims at enhancing quantitative and mathematical reasoning skills, as well as developing the ability to communicate effectively in written, spoken, and graphical form. It also aims at enhancing knowledge in the field of Economics and Finance. Designed to be a capstone course, emphasis will be put on both theoretical and quantitative methods. Basic tools and methods of economics and statistics are used to understand and analyze a variety of contemporary economic problems and policy issues chosen by the instructors.
LEARNING OUTCOMES:

LOS 1:  Build a solid understanding of and knowledge base in microeconomics, macroeconomics, and finance.            

LOS 2:  Development of critical-thinking skills and learn to apply economic analysis to understand economic events and everyday problems.

LOS 3:  Learn how to us empirical evidence in evaluating economic problems and theories, and to evaluate strategic business and policy proposals.

LOS 4:  Mastering research methods in the field and develop the ability to gather research data, conduct basic statistical analysis and interpret results. 

LOS 5:  Develop adequate training in mathematical methods to develop problem-solving skills, perform proofs and prepare for further graduate studies in the areas of economics and finance.

LOS 6:  Master solid communication skills that enable students to formulate a well-organized argument and communicate effectively in written, spoken, and graphical form about specific economic and financial issues.

LOS 7:  Gain awareness of the CFA Code of Ethics and Standards of Professional Conduct.

 
TEXTBOOK:
NONE
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Equity Research ReportStudents prepare an equity research report on a selected stock. Guidelines are in the Frohring Library Research Guides for EC 480.20%
White Paper on Sovereign DebtGuidelines are in the Frohring Library Research Guides for EC 48020%
CFA Ethics and Professional Standards TestIn class multiple choice exam.10%
Seminar DiscussionsIn class discussions on assigned papers and/or topics on the syllabus. Students are expected to participate, contribute, and lead discussions demonstrating competency in the assigned work.10%
Microeconomics Research Paper and PresentationGuidelines are posted on MyJCU.40%

-ASSESSMENT CRITERIA:
AWork of this quality directly addresses the question or problem raised and provides a coherent argument displaying an extensive knowledge of relevant information or content. This type of work demonstrates the ability to critically evaluate concepts and theory and has an element of novelty and originality. There is clear evidence of a significant amount of reading beyond that required for the course. 93-100: A 90-92.99: A-
BThis is highly competent level of performance and directly addresses the question or problem raised.There is a demonstration of some ability to critically evaluatetheory and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture andreference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments. 86-89.99: B+ 83-85.99: B 80-82.99: B-
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings. 75-79.99: C+ 70-74.99: C 65-69.99: C-
DThis level of performances demonstrates that the student lacks a coherent grasp of the material.Important information is omitted and irrelevant points included.In effect, the student has barely done enough to persuade the instructor that s/he should not fail. 60-64.99: D+ 55-59.99: D 50-54.99: D-
FThis work fails to show any knowledge or understanding of the issues raised in the question. Most of the material in the answer is irrelevant. Below 50
-ATTENDANCE REQUIREMENTS:

ATTENDANCE REQUIREMENTS AND EXAMINATION POLICY

You cannot make-up a major exam (midterm or final) without the permission of the Dean’s Office. The Dean’s Office will grant such permission only when the absence was caused by a serious impediment, such as a documented illness, hospitalization or death in the immediate family (in which you must attend the funeral) or other situations of similar gravity. Absences due to other meaningful conflicts, such as job interviews, family celebrations, travel difficulties, student misunderstandings or personal convenience, will not be excused. Students who will be absent from a major exam must notify the Dean’s Office prior to that exam. Absences from class due to the observance of a religious holiday will normally be excused. Individual students who will have to miss class to observe a religious holiday should notify the instructor by the end of the Add/Drop period to make prior arrangements for making up any work that will be missed.

Attendance is mandatory.

 
ACADEMIC HONESTY
As stated in the university catalog, any student who commits an act of academic dishonesty will receive a failing grade on the work in which the dishonesty occurred. In addition, acts of academic dishonesty, irrespective of the weight of the assignment, may result in the student receiving a failing grade in the course. Instances of academic dishonesty will be reported to the Dean of Academic Affairs. A student who is reported twice for academic dishonesty is subject to summary dismissal from the University. In such a case, the Academic Council will then make a recommendation to the President, who will make the final decision.
STUDENTS WITH LEARNING OR OTHER DISABILITIES
John Cabot University does not discriminate on the basis of disability or handicap. Students with approved accommodations must inform their professors at the beginning of the term. Please see the website for the complete policy.
SCHEDULE

Week 1 January 17 Professor Merva

Researching economics and finance: information resources and writing: the White Paper and the Equity Research Report.  Introduction to accessing Bloomberg Terminal data. Library Information Session with the Reference Librarian.  Begin lecture on valuation.

Assignment 1: Equity Research Report: presentations week ; paper due week 7 (and 8)

Readings

(i)                 What is Valuation? by Professor Aswath Damodaran, NYU Stern School of Business:http://pages.stern.nyu.edu/~adamodar/New_Home_Page/background/valintro.htm March 21, 2014

(ii)               What’s in an Equity Research Report? by Brian Cheasare; this is a nice 20 minute video on key elements of writing an ERP.

http://www.mergersandinquisitions.com/equity-research-report/

(iii)             CFA Equity Research Report Essentials 2013

(iv)             Guidelines on the Frohring Library website: http://johncabot.libguides.com/EC480/equity-research-report

 

Week 2 January 24 Professor Merva

Information Cascades - preparation questions assigned.

Classroom Games: Information Cascades by Lisa Anderson and Charles Holt, The Journal of Economic Perspectives, Vol. 10, No. 4 (Autumn, 1996)  http://www.jstor.org/stable/2138561

Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades by Sushil Bikhchandani and David Hirshleifer, The Journal of Economic Perspectives, Vol. 12, No. 3 (Summer, 1998) http://www.jstore.org/stable/2647037

Introduction to measuring wage discrimination (students should read briefly through this paper before class as we will go over it in class in preparation for week 3). 

Male Female Wage Discrimination in Urban Labor Markets, Author: Ronald Oaxaca, International Economic Review, Volume 14, Issue 3, October 1973 (693-709) 







Week 3 January 31  - Professor Stoian

Part 1: Microeconomics: Private information, adverse selection and market failure.

Akerlof G. A., “The market for “lemons”: quality uncertainty and the market mechanism”, The Quarterly Journal of Economics 84, 488-500, 1970.

URL: http://www.jstor.org/stable/1879431

Part 2: Discussion regarding the Final Paper for the class





Week 4 February 7- Professor Merva

Invited guest lecture on the practicalities of valuation and preparing and presenting an equity research report.

Week 5  February 14 - Professor Stoian    

Part 1: Microeconomics: Education and labor market signaling.

Spence M., “Job Market Signaling”, The Quarterly Journal of Economics 87, 355-374, 1973.

URL: http://www.jstor.org/stable/1882010

Part 2: Student Presentation on Applied Econometrics: Economic returns from schooling

Ashenfelter O., and A. Krueger, “Estimates of the Economic Return to Schooling from a New Sample of Twins”, The American Economic Review 84, 1157-1173, 1994.

URL: http://www.jstor.org/stable/2117766

Week 6  February 21   - Professor Stoian

Part 1: Microeconomics:  Imperfect information and credit rationing.

Stiglitz J. E., and A. Weiss, “Credit rationing in markets with imperfect information”, The American Economic Review 71, 393-410, 1981.

URL: http://www.jstor.org/stable/1802787

Part 2: Student Presentation on Applied Econometrics: Parental valuation of elementary education

Black S., “Do Better Schools Matter? Parental Valuation of Elementary Education”, The Quarterly Journal of Economics 114, 577-599, 1999.

URL: http://www.jstor.org/stable/2587017

 

Week 7 (and 8) February 28, March 3 - Professor Merva

 Presentation of Equity Research Reports – February 28; papers due March 3rd.

 Sovereign Debt - study questions assigned to be prepared for class.

Assignment 2: White Paper:  You have been asked by your employer, a pension fund, to provide a recommendation regarding whether or not to add a specific country’s sovereign debt to the portfolio.  Write a 4 to 5-page White Paper for your employer and give a 10-minute summary report with 3 to 10 power point slides maximum on the sovereign debt you have reviewed.

See the guidelines on the Frohring Library website for White Papers: http://johncabot.libguides.com/EC480/white-papers

 The Economics and Law of Sovereign Debt and Default Author(s) Ugo Panizza, Federico Sturzenegger and Jeromin Zettelmeyer, Journal of Economic Literature, Vol. 47, No. 3 (Sep., 2009), pp. 651-698,

To Judge Leviathan: Sovereign Credit Ratings, National Law, and the World Economy Author(s): Christopher M. Bruner and Rawi Abdelal, Journal of Public Policy, Vol. 25, No. 2 (May - Aug., 2005), pp. 191-217.

Sovereign Credit Rating Methodology: An Evaluation  by Ashok Vir Bhatia, October 2002. IMF Working Paper.

In class test on the CFA Code of Ethics and Professional Conduct  (March 3)

Week 9 March 7 - Professor Merva

Wage Discrimination - preparation questions assigned.

Bayesian Bigot? Statistical Discrimination, Stereotypes, and Employer Decision Making Author(s): Devah Pager and Diana Karafin Source:  Annals of the American Academy of Political and Social Science, Vol. 621, The Moynihan Report Revisited: Lessons and Reflections after Four Decades (Jan., 2009), pp. 70-93 Published by:  in association with the Sage Publications, Inc. American Academy of Political and Social Science Stable URL:  http://www.jstor.org/stable/40375833 Accessed: 19-04-2015 10:11 UTC

Are Emily and Greg More Employable than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination Author(s): Marianne Bertrand and Sendhil Mullainathan Source:   The American Economic Review, Vol. 94, No. 4 (Sep., 2004), pp. 991-1013 Published by:  American Economic Association Stable URL:  http://www.jstor.org/stable/3592802 Accessed: 19-04-2015 09:58 UTC

Male Female Wage Discrimination in Urban Labor Markets, Author: Ronald Oaxaca, International Economic Review, Volume 14, Issue 3, October 1973 (693-709) 

 Week 10 March 14 - Professor Merva

 Preliminary final paper presentations

 Week 11 March 21 - Professor Stoian

Part 1: Microeconomics:  Compensation schemes

Lazear, E., and S. Rosen, “Rank-Order Tournaments as Optimal Labor Contracts”, Journal of Political Economy 89, 841–64, 1981.

Part 2: Student Presentation on Applied Econometrics: Gender gap in willingness to compete

Niederle M., and Vesterlund L., “DoWomen Shy Away From Competition? Do Men Compete Too Much?" The Quarterly Journal of Economics 122, 1067-1101, 2007.

URL: http://web.stanford.edu/~niederle/Niederle.Vesterlund.QJE.2007.pdf

 Week 12 March 28  - Professor Stoian

Part 1: Microeconomics: Prospect theory

Kahneman, D., and A. Tversky, "Prospect Theory: An Analysis of Decision Under Risk", Econometrica 47, 263-292, 1979.

URL: http://www.jstor.org/stable/1914185

Part 2: Student Presentation of Draft of Final Paper

 Week 13 April 11 - Professor Merva

Unbalanced Growth - study questions to prepare before class

 Macroeconomics of Unbalanced Growth: The Anatomy of Urban Crisis Author(s): William J. Baumol Source: The American Economic Review, Vol. 57, No. 3 (Jun., 1967), pp. 415-426 Published by: American Economic Association

 Week 14 April 18 - Professor Merva and Stoian

 Final paper presentations

Week 15 Scheduled Final Exam meeting - Professor Merva and Stoian

Final paper presentations