Blocked Course:
Economic Foundations and Applications of Risk (LMU, 2021)
Lecture slides
0. Introduction [Slides] [Annotated Slides]
A. Foundations I: The Core
Chapter 1: Expected Utility Theory [Slides] [Annotated Slides]
Chapter 2: Measures of Risk Aversion [Slides] [Annotated Slides]
Chapter 3: Measures of Risk [Slides] [Annotated Slides]
B. Applications
Chapter 4: Optimal Portfolio Choice [Slides] [Annotated Slides]
Chapter 5: Insurance Markets [Skipped: See Insurance Economics Lecture next semester]
Chapter 6: Firms under Uncertainty [Slides] [Annotated Slides]
C. Foundations II: More about Risk
Chapter 7: Pareto Efficient Allocation of State Dependent Income [Slides] [Annotated Slides]
Chapter 8: The Value of Information [Slides] [Annotated Slides]
Exercises
- Exercises for Chapters 1-3 [Exercises]
- Exercises for Chapters 5-6 [Exercises] [Solution Chapter 4 – Exercise 1]
- Exercises – Class Notes [Day 2] [Day 3]
Assessment: Essay
- Essay Instructions [Instructions]
- Sample Essay [Essay] [Topic Paper 1] [Topic Paper 2]