In this video we use some examples of actual option quotes to better understand options as a financial derivative. Created by Sal Khan.
Economists can’t agree on whether investors and markets are rational and efficient, as modern financial theory assumes, or irrational and inefficient, as behavioral economists believe. Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Prof. Lo cuts through the debate in this course with a new framework—the Adaptive Markets Hypothesis—in which rationality and irrationality coexist.
Topics:
Introduction and Financial Orthodoxy
Rejecting the Random Walk and Efficient Markets
Behavioral Biases and Psychology
The Neuroscience of Decision-Making
Evolution and the Origin of Behavior
The Adaptive Markets Hypothesis
Hedge Funds: The Galapagos Islands of Finance
Applications of Adaptive Markets
The Financial Crisis
Ethics and Adaptive Markets
The Finance of the Future and the Future of Finance
As part of the Open Learning Library (OLL), this course is free to use. You have the option to sign up and enroll if you want to track your progress, or you can view and use all the materials without enrolling. Resources on OLL allow learners to learn at their own pace while receiving immediate feedback through interactive content and exercises.
In this video we explore how to derive the demand for a factor of production based on how productive that factor is and how much additional revenue that factor brings in. Created by Sal Khan.
Explore the mechanics of adjustable rate mortgages (ARM) in this video, including how they work and in what situation an ARM might be advantageous and when it might work against you.
As inflation raises the overall price level in an economy, the purchasing power of the dollar decreases and both borrowing and lending costs increase. The January 2023 issue of Page One Economics® discusses how price indexes can be used to transform nominal wages and interest rates into real, or inflation-adjusted, values.
This course exposes students to current issues and language use in German technology, business, and international industrial relations, and discusses ramifications of these issues in a larger social and cultural context. We seek to prepare students who wish to work or study in a German-speaking country by focusing on specialized vocabulary and systematic training in speaking and writing skills to improve fluency and style and emphasizing communicative strategies that are crucial in a working environment. Discussion and analysis of newspaper and magazine articles, modern expository prose, and extensive use of online material are included. Taught in German.
Macroeconomic policy is one of the most important policy domains, and the tools of macroeconomics are among the most valuable for policy makers. Yet there has been, up to now, a wide gulf between the level at which macroeconomics is taught at the undergraduate level and the level at which it is practiced. At the same time, doctoral-level textbooks are usually not targeted at a policy audience, making advanced macroeconomics less accessible to current and aspiring practitioners. This book, born out of the Masters course the authors taught for many years at the Harvard Kennedy School, fills this gap. It introduces the tools of dynamic optimization in the context of economic growth, and then applies them to a wide range of policy questions – ranging from pensions, consumption, investment and finance, to the most recent developments in fiscal and monetary policy. It does so with the requisite rigor, but also with a light touch, and an unyielding focus on their application to policy-making, as befits the authors’ own practical experience. Advanced Macroeconomics: An Easy Guide is bound to become a great resource for graduate and advanced undergraduate students, and practitioners alike.
14.461 is an advanced course in macroeconomics that seeks to bring students to the research frontier. The course is divided into two sections. The first half is taught by Prof. Iván Werning and covers topics such as how to formulate and solve optimal problems. Students will study fiscal and monetary policy, among other issues. The second half, taught by Prof. George-Marios Angeletos, covers recent work on multiple equilibria, global games, and informational fictions.
Professor Blanchard will discuss shocks, labor markets and unemployment, and dynamic stochastic general equilibrium models (DSGE models). Professor Lorenzoni will cover demand shocks, macroeconomic effects of news (with or without nominal rigidities), investment with credit constraints, and liquidity with its aggregate effects.
14.462 is the second semester of the second-year Ph.D. macroeconomics sequence.
The course is intended to introduce the students, not only to particular areas of current research, but also to some very useful analytical tools. It covers a selection of topics that varies from year to year. Recent topics include:
Growth and Fluctuations
Heterogeneity and Incomplete Markets
Optimal Fiscal Policy
Time Inconsistency
Reputation
Coordination Games and Macroeconomic Complementarities
Information
In analyzing fiscal issues, conventional public finance approaches focus mainly on taxation and public spending. Policymakers and practitioners rarely explore solutions by examining the fundamental problem: the failure of interested parties to act collectively to internalize the positive externalities generated by public goods. Public finance is merely one of many possible institutional arrangements for assigning the rights and responsibilities to public goods consumption. This system is currently under stress because of the financial crisis. The first part of the class will focus on collective action and its connection with local public finance. The second part will explore alternative institutional arrangements for mediating collective action problems associated with the provision of local public goods.
The objective of the seminar is to broaden the discussion of local public finance by incorporating collective action problems into the discourse. This inclusion aims at exploring alternative institutional arrangements for financing local public services in the face of severe economic downturn. Applications of emerging ideas to the provision of public health, education, and natural resource conservation will be discussed.
Consumers see or hear thousands of advertisements each day. The April 2017 issue of Page One Economics: Focus on Finance reviews advertising history and strategies ads use to create demand and influence consumer tastes and preferences.
This course meets weekly to discuss recent aerospace history and current events, in order to understand how they are responsible for the state of the aerospace industry. With invited subject matter experts participating in nearly every session, students have an opportunity to hone their insight through truly informed discussion. The aim of the course is to prepare junior and senior level students for their first industry experiences.
A progressive blog addressing topics such as affordable housing, urban planning, zoning, and public transportation.
he cost of healthcare is one of the largest personal expenditures worldwide, with residents of the United States spending upwards of $10,000 each year. A significant portion of healthcare costs in the United States and many other countries comes from paying for prescription medications. This unit is designed to give 9-12th grade chemistry, pharmacology, or biology students an introduction to prescription drug costs and what scientific measures can be taken to lower costs. Topics necessary for this unit include the relationship between structure and function, pH, activation energy, the relationship between temperature and reaction rate, catalysts, inhibitors, among additional concepts. This unit functions as an end-of-year project incorporating all of the topics listed above and challenges students to conduct research, design their own strategy to lower drug costs, and prove their viability and cost-saving potential through calculation. Individually or in pairs students must pick a strategy or technology, spend a day or more researching it, two days writing a research paper on it, one day preparing a class presentation, and one day for presentations. Student’s ability to effectively prove the viability of their strategies/technologies as well as estimate the cost savings to consumers will be weighted heavily.
Short explanation with graphical quiz to check understanding, on the changes in aggregate demand, short run aggregate supply and long run aggregate supply and the things that can change them.
We've learned about demand for a good or service, but aggregate demand is different: its the demand for everything bought in an economy. In this video, we discuss how aggregate demand (AD) is different from demand and why aggregate demand is downward sloping. Created by Sal Khan.
Agricultural Economies
This course provides an overview of airline management decision processes with a focus on economic issues and their relationship to operations planning models and decision support tools. It emphasizes the application of economic models of demand, pricing, costs, and supply to airline markets and networks, and it examines industry practice and emerging methods for fleet planning, route network design, scheduling, pricing and revenue management.
Classroom experiment illustrating the law of diminishing marginal productivity through the production of paper airplanes.