ECONOMICS AND ECONOMETRICS OF INTERNATIONAL FINANCE - 1

This course aims to present the main mathematical and statistical tools necessary for the analysis of financial phenomena. In particular, the course aims to provide the student with some basic econometric concepts, necessary for the interpretation of estimates and tests related to simple linear models. During the course, practical examples are made through the use of econometric software (such as GRETL).

Knowledge and understanding skills.
Attendance and active participation in lectures together with the individual study will allow the student to acquire the following knowledge and understanding skills:
- know and use the main mathematical tools necessary to represent complex economic phenomena;
- know the mathematical techniques useful to solve and analyze the proposed models.

Ability to apply knowledge and understanding.
Through the interaction with the instructors, the tutors, and peers and through the individual study the student acquires the following abilities:
- know how to use quantitative instruments to cope with complex problems related to an economic / business environment;
- know how to choose the most appropriate technique in order to solve the concrete problem under analysis.

Judgment skills, communication skills, learning skills.
Regarding the autonomy of judgment, communication skills and learning abilities, through the personal and group study of the concepts seen in class, the student will be able to:
- formulate rational justifications to the approach used to solve economic / business problems, understanding their relative strengths and weaknesses, by means of hypotheses, data and models;
- know how to formulate and communicate an adequate analysis and interpretation of economic-financial data through the use of mathematical models.

Linear Algebra and Statistics.

Basic Concepts (Review of Linear Algebra and Statistics)
The Simple Linear Regression Model
The Linear Regression Model
Assumptions and Diagnostic checks
Univariate Time-Series Modelling

Brooks, C. (2019). Introductory econometrics for finance. Cambridge University Press.

Written exam.
The exam is evaluated on a 30-point basis. The written exam is considered passed with the achievement of 18 total points over 30.

Class lectures with additional material provided by the teacher.

English

written