TAs: Gabriel BOBEICA, Nicoleta CIURILA, Alexandru LEONTE

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

Altar, M., C. Necula si G. Bobeica, 2009, Modelarea deciziilor financiar-monetare
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