Students should have basic knowledge of mathematics, of micro and macroeconomics and of the economics of money and banking

Altar, M., 2008, Teoria portofoliului, Editura ASE

Recommended books:

- Bodie Z., A. Kane, A. Marcus, 2009, Investments, 8th edition, McGraw-Hill
- Dornbusch, R., S. Fischer and R. Startz, 1997, Macroeconomics, 7th edition, McGraw-Hill
- Frois A., 1994, Economia politica, Ed. Humanitas, Bucuresti
- Georgescu-Roegen, N., 1971, The Entropy Law and the Economic Process, Harvard University Press
- Kreps D., 1990, A Course in Microeconomic Theory, Princeton University Press
- Mishkin F., 2004, The Economics Of Money, Banking, And Financial Markets, 7th edition, Addison-Wesley
- Pindyck R. and D. Rubinfeld, Microeconomics, 6th edition, Prentice Hall
- Samuelson, P., 1983, Foundations of Economic Analysis, Harvard University Press
- Sharpe W., G. Alexander, and J. Bailey, 1998, Investments, 6th Edition, Prentice Hall
- Varian, H., 1992, Microeconomic Analysis, 3rd edition, W. W. Norton & Co.

1. The Consumer

- consumer preferences
- the utility function
- the buget constraint
- Marshall demand function and Hicks demand function
- the income effect and the substitution effect
- intertemporal consumer behavior

2. The Firm

- the production function
- the cost function
- profit maximization - competitive markets case
- consumer surplus and producer surplus
- profit maximization - monopoly case
- capturing consumer surplus
- price discrimination

3. The Government

- the impact of a tax in the case of competitive markets
- the impact of a tax in the case of monopoly
- optimal taxation - Laffer model
- Ricardian equivalence

4. The Economy in the Long Run

- potential GDP
- The Classical Model
- monetary policy in the long run
- economic growth, Solow model

5. The Economy in the Short Run

- business cycle, the output gap
- IS-LM model
- monetary and fiscal policy in a closed economy
- Mundell-Fleming model
- the Impossible Trinity
- monetary and fiscal policy in an open economy

6. The Economy in the Medium Run

- AS-AD model
- expectations: adaptive vs rational
- adaptive expectations dynamic IS-LM model

7. Choice under Uncertainty

- expected utility, certainty equivalent
- risk aversion, risk premium
- Markowitz portfolio theory
- CAPM

Course Materials