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]
C. Foundations II: More about Risk
            Chapter 7: Pareto Efficient Allocation of State Dependent Income [Slides]
            Chapter 8: The Value of Information [Slides]

Exercises

• Exercises for Chapters 1-3 [Exercises]
• Exercises for Chapters 5-6 [Exercises] [Solution Chapter 4 – Exercise 1]

• Exercise Notes [Day 2] [Day 3]

Assessment: Essay​

• Essay Instructions [Instructions]
• Sample Essay [Essay] [Topic Paper 1] [Topic Paper 2]