Courses

The course deals with patterns of international trade, both in theory and empirics. Starting with the classic Ricardian and Heckscher-
Ohlin trade models, students will be introduced to modern models, such as Eaton & Kortum (2002), Melitz (2003) and Melitz &
Ottaviano (2008). In the tutorial students will present recent selected papers.
Ungraded but obligatory: presentation and two summaries (1 page each).
Literature: Robert C. Feenstra: „Advanced International Trade“ (2015), Princeton University Press;
Selected journal papers

Exam: Written exam (90 min)

The course aims at providing the basic concepts and methods for analysing panel data. It begins with introducing different static panel models with fixed and random effects, and discusses the problem of estimation in these models. The course covers tests of hypotheses with panel data as well as techniques for serial correlation, heteroscedasticity, simultaneous equations, dynamic models and models for qualitative dependent variables.
In the tutorials the methods are revisited and applied to empirical data using the software STATA. A deeper insight into advanced methods and additional topics is offered by means of assignments, empirical studies and/or literature reviews.

Literature:
- Baltagi, B.H., (2005), Econometric Analysis of Panel Data, 3rd ed., Wiley, New York.
- Hsiao, C., (2003), Analysis of Panel Data, 2nd ed., Cambridge University Press.
- Arellano, M. (2003), Panel Data Econometrics, Oxford: Oxford University Press.

Exam: written exam (90 min), two exam dates

Content of the course:

1. False perceptions:
narrow bracketing and other framing effect
probability updating errors
projection bias and time inconsistency
unawareness
exponential growth bias and other prediction errors
financial illiteracy

2. Preference anomalies:
probability weighting and prospect theory
present-biased preferences
ambiguity aversion

3. Interaction and markets:
markets with boundly rational agents
level-k and related models
course reasoning in markets

- A component of the seminar is an ungraded presentation.
- Organizational matters: Max. 20 participants.
- Please register with Professor Weizsäcker (weizsaecker@hu-berlin.de) until April 3, 2017.

The WZB reading group takes places each Monday from 4pm-5 pm.

Exam: Two presentations and/or discussions
Location: to be announced

Please contact Philipp Albert (philipp.albert@wzb.eu), if you are interested in joining the reading group.

Learn from Nobel prize winners, such as Engle (ARCH Models, 2003), Scholes, Merton, (Derivative Valuation, 1997) or Modigliani (Financial Markets Analysis, 1985) to understand statistics of financial markets!
The class is addressed to students with excellent knowledge of multivariate statistics and students with good skills in statistical software. This course is a starting point for students interested in quantitative finance and students with ambitions to work in the derivative, investment and risk-control departments. Former students of this course work for example at Deutsche Bank, Sal. Oppenheim, Citigroup, European Central Bank, BAFin, KPMG, Nadler Company and many international universities.

Literature:
Franke, J., Härdle, W., and Hafner, C. (2015) Statistics of Financial Markets: an Introduction. 4th ed., Springer Verlag, Heidelberg. ISBN: 978-3-642-54538-2 (555 p)

Härdle, W., Hautsch, N. and Overbeck, L. (2009) Applied Quantitative Finance. 2nd extended ed., Springer Verlag, Heidelberg. ISBN 978-3-540-69177-8 (448 p)

Hull (2005) Options, Futures, and Other Derivatives. 6th ed., Prentice Hall. ISBN 0-13-149908- 4 (816 p)

Härdle, W., Simar, L. (2015) Applied Multivariate Statistical Analysis. 4th extended ed., Springer Verlag, Heidelberg. ISBN 978-3-662-45170-0 (580 p)

Cizek, P., Härdle, W., Weron, R. (2011) Statistical Tools for Finance and Insurance. 2nd ed., Springer Verlag, Heidelberg. ISBN: 978-3-642-18061-3 (420 p)

www.quantlet.de

Exam: Oral Exam

the tutorial is Monday from 10-12 and the lecture from 14-16

Content:The Economics of Climate Change is an introductory course into economic assessment of climate change impacts and optimal mitigation and adaptation response. Welfare-economic concepts such as cost-benefit analysis, discounting, intergenerational equity, non-market valuation are applied to understand the impact of climate change and mitigation on long-term welfare and growth.
·         Topics: Along the lines of the Stern Review and the IPCC fifth assessment report, we provide a systematic overview of the relevant issues in climate change economics.
This includes, inter alia:
·         physics of climate change: global warming, radiative forcing, greenhouse gases, feedbacks, carbon cycle, uncertainties and projections
·         climate change impacts on biological and human systems, vulnerability, adaptive capacity, tipping points
·         social cost-benefit analysis, market and non-market valuation of impacts, discounting, and its ethical implications for inter-generational equity
·         stock pollutants: the atmosphere as a limited disposal space for greenhouse gases
·         macroeconomic modeling approaches to assess the costs of climate stabilization
·         concepts of social welfare
·         the interrelation between climate change and economic development and growth
·         theories of economic growth, such as the Solow and Ramsey growth models
·         Hotellig’s rule for optimal resource extraction
·         mitigation options in different sectors, including land and bioenergy, cities and transport, power generation and variable renewables