Course Name | Economic and Financial Networks |
Code | Semester | Theory (hour/week) | Application/Lab (hour/week) | Local Credits | ECTS |
---|---|---|---|---|---|
ECON 535 | Fall/Spring | 3 | 0 | 3 | 7.5 |
Prerequisites | None | |||||
Course Language | English | |||||
Course Type | Service Course | |||||
Course Level | First Cycle | |||||
Mode of Delivery | - | |||||
Teaching Methods and Techniques of the Course | ||||||
Course Coordinator | - | |||||
Course Lecturer(s) | ||||||
Assistant(s) | - |
Course Objectives | The course explores theoretical and empirical models of economic and financial networks. It will start with an overview of the main topics in the network analysis of economic and financial systems. Then students will learn how to apply network concepts on the analysis of financial behavior and performance. |
Learning Outcomes | The students who succeeded in this course;
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Course Description | The subjects of the course are the economic and financial networks. Materials to be covered in the course include firm ownership networks and stock prices correlation networks. Networks measures such as centrality, density and average distance will be discussed. Random link formation and strategic link formation will be examined. The spread of information, epidemics or opinions on the networks will be studied. In the course students will use network analysis software packages such as PAJEK, Dephi and igraph. |
Related Sustainable Development Goals | |
| Core Courses | |
Major Area Courses | ||
Supportive Courses | ||
Media and Managment Skills Courses | ||
Transferable Skill Courses |
Week | Subjects | Required Materials |
1 | Introduction: Network examples | SEN, chapter 1 |
2 | Network types and network measures | SEN, chapter 2 |
3 | Significance of social and economic networks | NCM, chapter 1 |
4 | Random Network dynamics | SEN, chpater 3 |
5 | Strategic Network Formation | SEN, chapter 4 |
6 | Cliques and communities | NCM, chapter 3 |
7 | Small Worlds, Preferential Attachment | SEN, chapter 5 |
8 | Midterm | |
9 | Diffusion on networks | SEN, chapter 6 |
10 | Learning on networks | SEN, chapter 7 |
11 | Financial Assets and Correlation Networks | Diebold and Yılmaz (2011), “On the Network Topology of Variance Decompositions: Measuring the Connectedness of Financial Firms” http://economics.sas.upenn.edu/sites/economics.sas.upenn.edu/files/11-031.pdf |
12 | Inter-BankCredit Networks | Stefano Battiston & Domenico Delli Gatti & Mauro Gallegati & Bruce C. Greenwald & Joseph E. Stiglitz, 2009. "Liaisons Dangereuses: Increasing Connectivity, Risk Sharing, and Systemic Risk," NBER Working Papers 15611, National Bureau of Economic Research, Inc. |
13 | Bank-Firm Networks | Domenico Delli Gatti & Mauro Gallegati & Bruce Greenwald & Alberto Russo & Joseph E. Stiglitz, 2010. "Business fluctuations in a credit-network economy," Papers 1006.3521, arXiv.org. |
14 | Systemic Risk | Haldane, Andrew G., and Robert M. May. "Systemic risk in banking ecosystems." Nature 469 (2011): 351–355. |
15 | Network Analysis of Global Financial Architecture | Lux, Thomas. "Network theory is sorely required." Nature 469 (2011) |
16 | Cool Network Applications |
Course Notes/Textbooks | Social and Economic Networks, 2008, Matthew O. Jackson, Princeton University Press. (SEN) |
Suggested Readings/Materials | Networks, Crowds, and Markets: Reasoning about a Highly Connected World. By David Easley and Jon Kleinberg. Cambridge University Press, 2010. Complete preprint on-line at http://www.cs.cornell.edu/home/kleinber/networks-book/, (NCM) |
Semester Activities | Number | Weigthing |
Participation | 16 | 10 |
Laboratory / Application | ||
Field Work | ||
Quizzes / Studio Critiques | ||
Portfolio | ||
Homework / Assignments | 4 | 20 |
Presentation / Jury | 1 | 10 |
Project | 1 | 10 |
Seminar / Workshop | ||
Oral Exam | ||
Midterm | 1 | 20 |
Final Exam | 1 | 30 |
Total |
Weighting of Semester Activities on the Final Grade | 50 | |
Weighting of End-of-Semester Activities on the Final Grade | 50 | |
Total |
Semester Activities | Number | Duration (Hours) | Workload |
---|---|---|---|
Course Hours (Including exam week: 16 x total hours) | 16 | 2 | 32 |
Laboratory / Application Hours (Including exam week: 16 x total hours) | 16 | 1 | |
Study Hours Out of Class | 16 | 4 | 64 |
Field Work | |||
Quizzes / Studio Critiques | |||
Portfolio | |||
Homework / Assignments | |||
Presentation / Jury | 1 | ||
Project | |||
Seminar / Workshop | |||
Oral Exam | |||
Midterms | 1 | 23 | |
Final Exams | 1 | 30 | |
Total | 165 |
# | Program Competencies/Outcomes | * Contribution Level | ||||
1 | 2 | 3 | 4 | 5 |
*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest