GRADUATE SCHOOL
Master of Business Administration (MBA) (With Thesis)
ECON 535 | Course Introduction and Application Information
| Course Name |
Economic and Financial Networks
|
|
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 be able to demonstrate general business knowledge and skills. |
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| 2 | To able to master the state-of-the-art literature in the area of specialization. |
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| 3 | To be able to evaluate the performance of business organizations through a holistic approach. |
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| 4 | To be able to effectively communicate scientific ideas and research results to diverse audiences. |
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| 5 | To be able to deliver creative and innovative solutions to business-related problems. |
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| 6 | To be able to solve business related problems using analytical and technological tools and techniques. |
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| 7 | To be able to take a critical perspective in evaluating business knowledge. |
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| 8 |
To be able to exhibit an ethical and socially responsible behavior in conducting research and making business decisions. |
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| 9 | To be able to carry out a well-designed independent and empirical research. |
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| 10 | To be able to use a foreign language to follow information about the field of finance and participate in discussions in academic environments. |
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*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest