Behavioral Finance (F)

Course content

Traditional economic theory assumes that economic agents are fully rational with unlimited cognitive abilities and willpower. However, individuals frequently and systematically make decisions in contradiction with these standard presumptions.

Against the background of this finding the course addresses e.g. the following questions:

  • What are the shortcomings of traditional theories in economics and finance?

  • How do the new concepts / theories in behavioral finance and behavioral economics address these shortcomings?

  • How do these new theories relate to the traditional theories and what are their strengths and limitations?

  • How do the new behavioral presumptions in behavioral finance and economics change the predictions of classical economic theories?

Education

MSc programme in Economics – elective course

The course is part of the MSc programme in Economics, Financial line, symbolized by ‘F’.

Learning outcome

After completing the course the student is expected to be able to:

 

Knowledge:

  • Account for how behavioral finance and economics attempts to understand the most important systematic behavioral departures from standard economic theories.

  • Provide an in-depth overview of the most important seminal works in behavioral finance

  • Identify and discuss the impact and relevance of the new concepts and theories presented in these seminal works.

 

Skills:

  • Critically assess and relate the new concepts and the supporting empirical evidence put forward in the hitherto existing seminal works in behavioral finance.

  • Debate and present these new and often complex concepts in a simple, clear and pricise way.

 

Competencies:

  • Apply the empirical and theoretical knowledge and the skills obtained in this course to understand real-world behavioral phenomena that lie beyond the scope of this course.

  • Solve problems and implement decision for subject within behavioral finance that lie outside the scope of the course.

In the first week of the course there will be an opening lecture during which also all organizational issues are discussed. In all the following weeks there will be lectures on different topics in behavioral finance and economics.

Restrictions due to Coronavirus:
The teaching in this course may be changed to be taught either fully or partly online due to COVID-19. For further information, please see the course room on Absalon (for enrolled students).

A list of required readings will be given to the students in the beginning of the course

A sound knowledge of microeconomics and game theory is required from a course equivalent to Microeconomics III, Studies of Economics, University of Copenhagen. It is strongly recommended to have followed the course before or at least parallel to "Behavioral Finance".

Schedule:
2 hours lectures 1 to 2 times a week from week 36 to 50 (except week 42).

Schema:
The overall schema for the Master can be seen at KUnet:
MSc in Economics => "Courses and teaching" => "Planning and overview" => "Your timetable"

Timetable and venue:
To see the time and location of lectures please press the link under "Timetable"/​"Se skema" at the right side of this page. E means Autumn.

You can find the similar information partly in English at
https:/​/​skema.ku.dk/​ku2122/​uk/​module.htm
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-E21; [Name of course]”
-Select Report Type: “List – Weekdays”
-Select Period: “Efterår/Autumn”
Press: “ View Timetable”

Please be aware:
- It is the students´s own responsibility to continuously update themselves about their studies, their teaching, their schedule, their exams etc. through the curriculum of the study programme, the study pages at KUnet, student messages, the course description, the Digital Exam portal, Absalon, the personal schema at KUnet and myUCPH app etc.

Oral
Collective

 

Students have the possibility to get individual oral feedback during office hours

ECTS
7,5 ECTS
Type of assessment
Written examination, 2 hours under invigilation
as an ITX-exam in the exam venues of the university.

The exam assignment is in English and must be answered in English.

Changes due to Coronavirus:
In the event that COVID-19 restrictions may affect the conduction of the ITX-exams, the written exam and the re-sit exam will be changed to a take-home exam with all aids. If done so, the changes will be announced in study messages at KUnet, in the Digital Exam portal and here in the Exam section of the course description.

The take-home exams will still be individual and it is not allowed to communicate with any one about the exam assignment nor the solution at all. It is also prohibited to distribute data and other information at all. If this or alike actions happens, it will be regarded as cheating and plagiarism.
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Aid

No aids allowed at the written ITX-exams.

 

If the ITX-exams are changed to take-home exams due to COVID-19, the written take-home exams will be with all aids.

 

For further information about allowed aids for the re-examination. Please go to the section "Re-exam".

Marking scale
7-point grading scale
Censorship form
No external censorship
at the written exams. The written ITX-exam may be chosen for external assessment by random sample.

An oral re-examination may be with external assessment.
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Criteria for exam assessment

Students are assessed on the extent to which they master the learning outcome for the course.

 

In order to obtain the top grade "12", the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.

 

In order to obtain the passing grade “02”, the student must in a satisfactory way be able to demonstrate a minimal acceptable level of  the knowledge, skills and competencies listed in the learning outcomes.

Single subject courses (day)

  • Category
  • Hours
  • Lectures
  • 42
  • Preparation
  • 162
  • Exam
  • 2
  • English
  • 206