GRADUATE SCHOOL
Financial Economics (With Thesis)
ECON 535 | Course Introduction and Application Information
Course Name |
Economic and Financial Networks
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Code
|
Semester
|
Theory
(hour/week) |
Application/Lab
(hour/week) |
Local Credits
|
ECTS
|
ECON 535
|
Fall/Spring
|
3
|
0
|
3
|
7.5
|
Prerequisites |
None
|
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Course Language |
English
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Course Type |
Elective
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Course Level |
First Cycle
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Mode of Delivery | - | |||||
Teaching Methods and Techniques of the Course | - | |||||
Course Coordinator | - | |||||
Course Lecturer(s) | ||||||
Assistant(s) | - |
Course Objectives | The course explores theoretical and empirical models of economic and financial networks. It will start with an overview of the main topics in the network analysis of economic and financial systems. Then students will learn how to apply network concepts on the analysis of financial behavior and performance. |
Learning Outcomes |
The students who succeeded in this course;
|
Course Description | The subjects of the course are the economic and financial networks. Materials to be covered in the course include firm ownership networks and stock prices correlation networks. Networks measures such as centrality, density and average distance will be discussed. Random link formation and strategic link formation will be examined. The spread of information, epidemics or opinions on the networks will be studied. In the course students will use network analysis software packages such as PAJEK, Dephi and igraph. |
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Core Courses | |
Major Area Courses | ||
Supportive Courses | ||
Media and Management Skills Courses | ||
Transferable Skill Courses |
WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES
Week | Subjects | Related Preparation |
1 | Introduction: Network examples | SEN, chapter 1 |
2 | Network types and network measures | SEN, chapter 2 |
3 | Significance of social and economic networks | NCM, chapter 1 |
4 | Random Network dynamics | SEN, chpater 3 |
5 | Strategic Network Formation | SEN, chapter 4 |
6 | Cliques and communities | NCM, chapter 3 |
7 | Small Worlds, Preferential Attachment | SEN, chapter 5 |
8 | Midterm | |
9 | Diffusion on networks | SEN, chapter 6 |
10 | Learning on networks | SEN, chapter 7 |
11 | Financial Assets and Correlation Networks | Diebold and Yılmaz (2011), “On the Network Topology of Variance Decompositions: Measuring the Connectedness of Financial Firms” http://economics.sas.upenn.edu/sites/economics.sas.upenn.edu/files/11-031.pdf |
12 | Inter-BankCredit Networks | Stefano Battiston & Domenico Delli Gatti & Mauro Gallegati & Bruce C. Greenwald & Joseph E. Stiglitz, 2009. "Liaisons Dangereuses: Increasing Connectivity, Risk Sharing, and Systemic Risk," NBER Working Papers 15611, National Bureau of Economic Research, Inc. |
13 | Bank-Firm Networks | Domenico Delli Gatti & Mauro Gallegati & Bruce Greenwald & Alberto Russo & Joseph E. Stiglitz, 2010. "Business fluctuations in a credit-network economy," Papers 1006.3521, arXiv.org. |
14 | Systemic Risk | Haldane, Andrew G., and Robert M. May. "Systemic risk in banking ecosystems." Nature 469 (2011): 351–355. |
15 | Network Analysis of Global Financial Architecture | Lux, Thomas. "Network theory is sorely required." Nature 469 (2011) |
16 | Cool Network Applications |
Course Notes/Textbooks | Social and Economic Networks, 2008, Matthew O. Jackson, Princeton University Press. (SEN) |
Suggested Readings/Materials | Networks, Crowds, and Markets: Reasoning about a Highly Connected World. By David Easley and Jon Kleinberg. Cambridge University Press, 2010. Complete preprint on-line at http://www.cs.cornell.edu/home/kleinber/networks-book/, (NCM) |
EVALUATION SYSTEM
Semester Activities | Number | Weigthing |
Participation |
16
|
10
|
Laboratory / Application | ||
Field Work | ||
Quizzes / Studio Critiques | ||
Portfolio | ||
Homework / Assignments |
4
|
20
|
Presentation / Jury |
1
|
10
|
Project |
1
|
10
|
Seminar / Workshop | ||
Oral Exams | ||
Midterm |
1
|
20
|
Final Exam |
1
|
30
|
Total |
Weighting of Semester Activities on the Final Grade |
50
|
|
Weighting of End-of-Semester Activities on the Final Grade |
50
|
|
Total |
ECTS / WORKLOAD TABLE
Semester Activities | Number | Duration (Hours) | Workload |
---|---|---|---|
Theoretical Course Hours (Including exam week: 16 x total hours) |
16
|
2
|
32
|
Laboratory / Application Hours (Including exam week: '.16.' x total hours) |
16
|
1
|
16
|
Study Hours Out of Class |
16
|
4
|
64
|
Field Work |
0
|
||
Quizzes / Studio Critiques |
0
|
||
Portfolio |
0
|
||
Homework / Assignments |
0
|
||
Presentation / Jury |
1
|
0
|
|
Project |
0
|
||
Seminar / Workshop |
0
|
||
Oral Exam |
0
|
||
Midterms |
1
|
23
|
23
|
Final Exam |
1
|
30
|
30
|
Total |
165
|
COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP
#
|
Program Competencies/Outcomes |
* Contribution Level
|
||||
1
|
2
|
3
|
4
|
5
|
||
1 | To improve and deepen expertise in economics and finance. |
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2 | To be able to comprehend the interaction between economics, finance and related fields. |
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3 | To be able to apply the advanced level knowledge acquired in economics and finance. |
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4 | To be able to create new knowledge by combining the knowledge of finance and economics with the knowledge coming from other disciplines and be able to solve problems which requires expert knowledge by applying scientific methods. |
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5 | To be able to use computer programs needed in the fields of economics and finance as well as information and communication technologies in advanced levels. |
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6 | To be able to think analytically to identify problems in finance and economics and to be able to make policy recommendations in economics and finance based on scientific analysis of issues and problems. |
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7 | To be able to develop new strategic approaches for unexpected, complicated situations in finance and economics and take responsibility in solving it. |
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8 | To protect the social, scientific and ethical values at the data collection, interpretation and dissemination stages and to be able to institute and observe these values. |
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9 | To be able to critically evaluate the knowledge in finance and economics, to lead learning and carry out advanced level research independently. |
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10 | To be able to use a foreign language for both following scientific progress and for written and oral communication. |
*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest