Economics of Risk and Insurance

Academic year
2021/2022 Syllabus of previous years
Official course title
ECONOMIA DEL RISCHIO E DELLE ASSICURAZIONI
Course code
EM2080 (AF:358791 AR:188280)
Modality
On campus classes
ECTS credits
6
Degree level
Master's Degree Programme (DM270)
Educational sector code
SECS-P/01
Period
2nd Term
Course year
1
Where
VENEZIA
Moodle
Go to Moodle page
The course intends to provide students with the basic knowledge that is needed to deal with insurance markets. We will also study household finance problems and the issues of adverse selection and moral hazard in insurance markets.
The student should come to understand risk, uncertainty, insurance and the role of financial markets in a modern economy. She/he should also be able to understand the basic concepts and methods for the design of financial portfolios under uncertainty. Lastly, she/sh should learn the main issues due to asymmetric information in the insurance markets.
Basic microeconomic theory and decision theory, accounting rules and procedures, calculus and basic mathematical analysis.
1. Expected utility theory
2. Risk aversion
3. Experimental paradoxes of EUT: Allais, Ellsberg, etc.
4. Portfolio choice
5. Asset pricing
6. Insurance and hidden information: adverse selection and screening
7. Insurance and hidden action: moral hazard
The Economics of Risk and Time By Christian Gollier (MIT Press)
Learning material provided by the lecturer on Moodle
In-person closed-book written exam at the end of the course.
Attendance of lectures either in-person or remotely (straming on Zoom). The lecturer may also assign homework.
Italian
This syllabus is provisional and may be subject to small changes during the term.
written
Definitive programme.
Last update of the programme: 15/09/2021